Lease Beat

Veracen Partners Among Pack of New Leases at 250 West 55th Street

250 West 55th Street. (Credit: New York Yimby)

Veracen Partners is among a set of several new tenants to take space at Boston Properties250 West 55th Street, signing a 10-year, 11,263-square-foot lease for a portion of the 16th floor at the 38-story tower.

CBRE, which represented the landlord, announced the lease concurrently with a 7,196-square-foot deal with RTW Investments & LifeSci Capital and a 4,806-square-foot Coltrane Asset Management lease. All three firms will occupy the 16th floor of the building, which features new high-end prebuilts designed by Gensler, with 10-foot ceilings and perimeter offices. Read More

Moving Day

Morrison & Foerster Moving in at 250 West 55th Street

250 West 55th Street. (Credit: Boston Properties)

Morrison & Foerster will be the first tenant to move in at 250 West 55th Street, according to an email to clients viewed by Commercial Observer. The law firm will officially relocate from 1290 Avenue of the Americas on Monday.

The move comes nearly three years after Morrison & Foerster first signed a lease at Boston Properties’ new tower. The firm’s initial 15-year commitment for 180,000 square feet of space on the 17th through 23rd floors allowed the developer to proceed with construction of the tower, which had been delayed during the recession. Approximately a year later, Morrison & Foerster signed a lease for an additional floor at the building. Read More

Lease Beat

Platinum Partners Inks 250 West 55th Street Lease

250 West 55th Street. (Credit: Boston Properties)

Platinum Partners, a hedge fund with more than $1 billion in assets under management, has signed a 10-year lease for the entire 23,274-square-foot 14th floor of Boston Properties250 West 55th Street, Commercial Observer has learned.

The tenant, currently headquartered at Carnegie Hall Tower, will pay rent starting in the mid-$70s per square foot, according to data from CompStak. The terms are similar to the recent deal for Modern Bank, which Commercial Observer first reported last month. Read More

Lease Beat

Modern Bank Relocating to 250 West 55th Street

250 West 55th Street. (Credit: Boston Properties)

Modern Bank has inked a 13,200-square-foot lease on the 15th floor of Boston Properties250 West 55th Street in a relocation from 667 Madison Avenue, sources said. 

The one-million-square-foot, 38-story office tower, designed by SOM, completed last year and conceived as a contemporary take on the firm’s mid-century Lever House, has attracted a string of tenants relocating from buildings deemed impressive in their own right.

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The Plan

Check Out New Space at 250 West 55th Street

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Boston Properties’ 250 West 55th Street is set to come online early next month with key tenants Morrison & Foerster and Kaye Scholer having already snapped up close to half of the building. CBRE, one of the lead leasing agents at the building, is already planning for tenant expansion, offering short-term (five- to seven-year) leases for a variety of prebuilt spaces on the building’s 25th floor.

Ranging from approximately 3,200 square feet to 5,700 square feet, each space is flexibly designed to cater to a range of tenants, including law and financial services. Though CBRE has yet to begin marketing the space officially, the leasing team is already in discussions with one potential financial services tenant.

Peter Turchin, executive vice president and landlord representative, spoke to the The Commercial Observer last week about the building’s 25th floor, where work is being completed, and what opportunities abound at 250 West 55th Street. “We’re just finishing up the units right now,” said Mr. Turchin. “These will be completed in the next week to two weeks and they’re going to come online the first week after Labor Day.” Read More

The Plan

Upscale Restaurant Space at Boston Properties’ 250 West 55th Street

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Boston Properties’ new marquee office tower at 250 West 55th Street, which is set to open for its anchor office tenants Morrison & Foerster and Kaye Scholer this winter, boasts a number of retail opportunities, including a restaurant space totaling more than 7,000 square feet across the ground and lower levels.

The unique location is a prime intersection for tourist, residential and business traffic. The search for the right tenant, which is being handled by Cushman & Wakefield’s Steven Soutendijk, senior director, David Green, executive vice president, and Christopher Schwart, senior associate, is focused on a full-service restaurant that fits with the image of the building. Though discussions with a number of potential users are ongoing, there have been no handshakes on a deal. The space, though, is ready to begin a build-out should a tenant sign on.

“We’re ready to start now, we’re ready to sign a lease now and we’re ready to get a tenant in the building now,” said Mr. Soutendijk during a tour of the space last week. “A restaurant build-out of this magnitude could take anywhere from six to nine months, and we would love to get it online at the same time as the building, but that would necessitate signing a lease now.” Read More

The Sit-Down

Boston Legal: Andrew Levin On 250 West 55th Street

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With eight buildings totaling close to nine million square feet across a number of submarkets, Boston Properties is one of the largest owners of real estate in Midtown. Andrew Levin, senior vice president of leasing in the real estate investment trust’s New York office, has his finger on the pulse of the market. He spoke with The Commercial Observer last week about leasing trends in Midtown and Boston Properties’ development of 250 West 55th Street, which will open in fall 2013. Read More

Development

Midtown’s Westward Expansion Offers a Modern Crack at Manifest Destiny

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Like the westward expansion that gripped the nation during the early to mid-1800’s, the expansion of Midtown Manhattan offers the city’s commercial real estate pioneers a modern crack at manifest destiny.

The trajectory of Midtown’s new building stock over the last seven decades tells a story of westward expansion that most recently struck Midtown West with the Hudson Yards development project.

“Hudson Yards really is the last frontier,” said James Delmonte, principal and vice president of research at Avison Young.  “Firms are looking for newer product and larger floor plates, largely because there really is no available land on the east side.” Read More

4Q12

Weathering the Storm: 4th Quarter Leasing Saw Improvements

4Q12 for web

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Times of change and uncertainty are always worrisome for investors—fear takes hold, spending is called into question and valuations become unpredictable.

Mix an election season with the impending threat of a potentially devastating fiscal cliff, then throw in a destructive, rogue tropical storm named Sandy, and you’ve created an environment that is not conducive to a stellar business quarter for the commercial market.

However, thanks to tax law-motivated sales and retail—as well as a handful of big end-of-year leasing deals—the fourth quarter ended on a relatively positive note, despite a slowdown in leasing activity. Read More

Lease Beat

Microsoft Inks 3rd Biggest Deal of 2012

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Months of negotiations between SPJ Properties and Microsoft have finally paid off, with the tech giant signing a 230,000-square-foot lease at its new Midtown headquarters at 11 Times Square – and solidifying one of the top leasing deals of the year.

The company eyed the new space for months, as rumors swirled it would be vacating Vornado’s 1290 Avenue of the Americas, and last month transaction is the third biggest non-renewal leasing transaction of 2012. Read More

Lease Beat

Negotiations Over Signage Delay Microsoft Deal

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Negotiations over outdoor signage at 11 Times Square, among other issues, has delayed a deal between SPJ Properties and Microsoft expected today, sources told The Commercial Observer.

After eyeing the space for months, the company was shuffling papers around this week with owner SPJ Properties to get the deal completed; but the signing of a letter of intent, which sources said was scheduled to happen today, likely won’t be completed until after Thanksgiving, said people familiar with the deal.

The 16-year lease is for 260,000 square feet across floors four through 11, at a rate in the low $60’s, a broker who reviewed a preliminary version of the lease said. Read More

Midtown

Migration to Hudson Yards Predicted

West Side Boundaries.

The West Side of Midtown has increased its presence in the commercial real estate market within the past 20 years. The market now boasts a vacancy rate below 10 percent across all assets.

“To understand this market, it’s important to view it in the context of the history of the last 25 years,” explained Mitch Arkin, an executive director at Cushman & Wakefield. “In the ’80s, the market started pushing west with the development of Carnegie Hall Tower, the Equitable Building, 787 Seventh Avenue, followed by 1585 Broadway, 1540 Broadway, 750 Seventh Avenue, Worldwide Plaza, 1745 Broadway [and] Metropolitan Tower. Those buildings all brought Eighth Avenue and Broadway north of Times Square into Midtown.” Read More

Lease Beat

Microsoft Bumped From 250 West 55th Street

11 Times Square

Microsoft has been bumped from 250 West 55th Street, leaving it with two likely space possibilities: a renewal deal at its current home at 1290 Avenue of the Americas or a relocation to 11 Times Square several sources familiar with the company say.

The company had been in advanced talks to take space at the Read More

Lease Beat

Chadbourne To Take Space At 1301 6th

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Chadbourne & Parke LLP is going forward with a deal to move its headquarters to 1301 Avenue of the Americas, several sources have told The Commercial Observer.

The law firm had been shopping around the Manhattan market for months in search of a new home, coming close to leases at One World Trade Center and 230 Park Avenue only to pull away and resume its search. Read More