Lease Beat

Jennison Associates Renews, Expands at 237 Park Avenue

Rendering of the entrance to 237 Park Avenue.

Jennison Associates has renewed its lease at 237 Park Avenue and expanded by 20,000 square feet.The investment firm’s existing 146,000-square-foot space will be increased to 166,000 square feet across three floors of the building.

The tenant, a wholly-owned subsidiary of Prudential Financial, has renewed its lease for 10 years, according to Crain’s New York Business, which first reported the deal. Asking rent for the space was in the $80s per square foot. Read More

Renderings

Renderings Revealed for 237 Park Avenue

Rendering of the entrance to 237 Park Avenue.

RXR Realty has released renderings of the revamped 237 Park Avenue after the recent open of the marketing office in the Class A office building.

To create the office, RXR, along with Walton Street Capital, gutted a floor and rebuilt the space at the 21-story building, between 45th and 46th Streets, to highlight the full potential of the 60,000-square-foot floor plate.  Read More

Lease Beat

Revlon Relocates to 1 New York Plaza

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Revlon has reportedly signed a 15-year lease for the top two floors at Brookfield Office Properties1 New York Plaza in a relocation from 237 Park Avenue, joining a flight of value-seeking firms to recently head Downtown.

The 91,194-square-foot lease covers floors 49 and 50, the latter of which is a glass box-style penthouse with 15-foot ceilings, according to the New York Post, which first reported the deal earlier this week and noted that former occupant Goldman Sachs removed columns from the space to accommodate their trading floor. Read More

Sales Beat

125 West 55th Sells for $470 M. Amid Push to Unload Class A Towers

(Credit: Macklowe Properties)

In another whopping example of large real estate owners seeking to capitalize on current market conditions by unloading top-shelf inventory, Boston Properties has reportedly sold its 23-story office building at 125 West 55th Street for $470 million to J.P. Morgan Asset Management.

The deal follows a string of other Class A building sales this year – 550 Madison Avenue, 30 Rockefeller Plaza, 237 Park Avenue and 75 Rockefeller Plaza – which accounted for $3.8 billion of the city’s first quarter dollar volume and created a 46% year-over-year jump, according to data from Avison Young. Read More

Sales Beat

Lehman to Sell Stake in 425 Park Avenue

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Lehman Brothers Holdings Inc. is aiming to sell its 90 percent stake in 425 Park Avenue, a source familiar with the matter confirmed with The Commercial Observer. Eastdil Secured is marketing the property, according to the source.

A publicly available spreadsheet of Lehman’s commercial real estate holdings lists a building with a description similar to 425 Park Avenue: “Sandwich ground lease in an existing Class B building in New York City that is slated for demolition and redevelopment into a new office tower beginning 2015.” The list of holdings identifies Adam Spies of Easdtil Secured as the broker for the property. The source familiar confirmed Spies as the broker for 425 Park Avenue, but the listing could not be immediately verified.

The Wall Street Journal first reported the story earlier today. The Midtown East building is set to be demolished and replaced with a new office tower designed by Foster + Partners. Read More

Sales Beat

RXR Realty to Acquire 237 Park Avenue

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RXR Realty, a real estate operating and investment company affiliated with Walton Street Capital, has agreed to acquire 237 Park Avenue from an entity controlled by Lehman Brothers Holdings Inc., it was announced today.

The transaction has a large equity component with a low-leverage, existing loan in place, according to Scott Rechler, chairman and chief executive officer of RXR. According to multiple reports, the closing price is approximately $800 million. Read More