Lease Beat

Private Equity Advisory Takes Final Madoff Floor in Lipstick Building

The Lipstick Building at 885 Third Avenue.

StepStone Group, a global private markets firm, has leased the entire 17th floor at the Lipstick Building, one of the floors leased to Bernard L. Madoff Investment Securities, and the site of where company head Bernard Madoff operated his $65 billion Ponzi scheme, Commercial Observer has learned.

StepStone signed a 10-year lease for the 19,270-square-foot renovated space in the 34-story IRSA– and Marciano Investment Group-owned office tower at 885 Third Avenue between East 53rd and East 54th Streets, according to a release from the owners and the building’s co-asset management firm Herald Square Properties. The asking rent was $85 per square foot. The deal brings the building to 97 percent occupied. Only the 13,200-square-foot 28th floor is available for lease. Read More

Lease Beat

Fourth TAMI Tenant Takes Space in West 36th Street Building [Updated]

142 West 36th Street.

The U.S. division of British publishing and distribution group Quarto Publishing Group USA is the fourth TAMI, or technology, advertising, media, information, tenant to sign a lease at 142 West 36th Street since Herald Square Properties and The Davis Companies bought the building about a year ago.

Commercial Observer has learned that the tenant has taken 7,910 square feet of pre-built space at the 17-story office building, which is between Broadway and Seventh Avenue, in a 10-year deal. Asking rents in the building are between $58 and $60 per square foot. Read More

The Lobby

Anthony McElroy Named Partner at Herald Square Properties

Anthony McElroy (photo: Alexander Marketing).

Anthony McElroy has been named a partner at Herald Square Properties, a New York-based owner and operator of commercial assets, according to a press release issued by the company today.

In his new role, Mr. McElroy will join founding partners and principals Gerard Nocera and Michael Reid, and principal John Monaco, in overseeing the acquisition of all commercial properties for the group. The company now owns office buildings in Midtown and is asset manager for the Lipstick Building at 885 Third Avenue, among other properties. Read More

The Plan

The Plan: View the Space’s Office at 142 West 36th Street

View the Space's office at 142 West 36th Street.

View the Space, a cloud-based commercial real estate leasing start-up, has moved into its new digs after slumming it on West 30th Street. The firm’s new space, designed by The Mufson Partnership, spans 7,400 square feet on the entire 12th floor at Herald Square Properties’ 142 West 36th Street just off Broadway.

VTS was delivered turnkey space with exposed ceilings and ductwork as well as polished concrete floors. Read More

Lease Beat

Eyeglass Company Moves Uptown to Garment District

234 West 39th Street

Eyeglass designer, manufacturer and retailer Robert Marc, Ltd. will move from the Meatpacking District to the Garment District through a 10-year, 8,550-square-foot lease at Herald Square Properties and The Davis Companies’ building at 234 West 39th StreetCommercial Observer has learned.

The full-floor lease in the building between Seventh and Eighth Avenues with asking rents in the mid $40s means the building is 95 percent leased, said John Monaco, the principal of Herald Square Properties. Read More

Lease Beat

Another Tech Tenant Moving Into 292 Madison

292 Madison Avenue

A fifth technology company has taken a full-floor of pre-built office space designed by the Mufson Partnership at 292 Madison Avenue, Commercial Observer has learned.

Raptor Trading, a provider of multi-asset electronic trading and risk management solutions, signed a lease for the 5,752-square-foot 22nd floor at the 41st Street building. Among the tech firms it joins is Exponential Interactive, which took the entire 11th floor in the building last year, as Commercial Observer previously reported.  Read More

Lease Beat

CRE Tech Service Provider Leases Space on West 36th Street

142 West 36th Street

View the Space is taking more than 7,000 square feet in Herald Square Properties and Davis Companies‘ 142 West 36th Street, Commercial Observer has learned.

The commercial real estate software company, which claims the largest library of commercial real estate videos in the world, is taking the entire 12th floor in the 116,000-square-foot building, marking the first tenant to move into the new Mufson Partnership-designed pre-built offices between Broadway and Seventh Avenue. Read More

Lease Beat

Exponential Interactive Moving to Pre-built Space at 292 Madison Avenue


Exponential Interactive has signed an 11,113-square-foot lease for the entire pre-built 11th floor at 292 Madison Avenue.

“This lease is a further testament to the successful re-positioning of the property,” said Gerard Nocera, principal of Herald Square Properties, in a prepared statement. “Madison Avenue south of 42nd Street has become one of the city’s most active hi-tech corridors and our Soho-style pre-built offices are clearly conducive to these new tenant categories.” Read More

least beat

E-commerce Site Extends and Expands in 22,226-SF Lease at 292 Madison

292 Madison Avenue

E-commerce company (formerly Fifty-one Global E-Commerce) expanded and extended its lease for a total 22,226 square  at 292 Madison Avenue, The Commercial Observer has learned.

David L. Hoffmann, Jr. and Bryan Boisi of Cassidy Turley represented the tenant. William G. Cohen and Ryan Kass of Newmark Grubb Knight Frank represented the owner, identified as 292 Madison Avenue Leasehold LLC. Asking rent was in the high $40 to mid $50 a foot range, said Michael Reid, a principal at building manager Herald Square Properties. Read More

Prebuilt Building Out in Manhattan

The ground floor business lounge at 747 Third Avenue. (photo courtesy of Regus)

Regus announced plans to expand its prebuilt office space footprint in Manhattan with four new locations slated for leasing in the coming year. The Luxembourg-based company has 60 such business centers in the tristate area, 26 of which are in New York City.

New locations include 23,000 square feet at 747 Third Avenue, two floors Read More

Arts and Buildings

Philip Johnson Gets Exhibition at The Lipstick Building

philip-johnson with building hat

Famed architect Philip Johnson will get his own retrospective in the lobby of The Lipstick Building at 885 Third Avenue, whose distinct shape he helped design.

The exhibition will showcase 50 years of the architect’s work, which includes Mr. Johnson’s relationship to the Bauhaus arts movement and the history of the lipstick building. It will be curated by Hilary Lewis, who authored two books on Philip Johnson (Philip Johnson: The Architect in his Own Words and The Architecture of Philip Johnson), and the exhibit itself will be designed by Dan Shannon of the architecture firm Moed de Armas & Shannon.

Expect to see rare photographs of Mr. Johnson, along with his building designs and his sketches of the Lipstick Building before the building was constructed.  Read More

Lease Beat

QlikTech Grabs Pre-built Space at 292 Madison Avenue

292 Madison Avenue (photo courtesy of CoStar)

QlikTech, a maker of business intelligence software, will be taking an entire pre-built office space on the 18th floor of 292 Madison Avenue, The Commercial Observer has learned.

QlikTech beat out a hedge fund for the pre-built space, which is sized at 6,035 square feet and priced at an asking price of $55-a-square-foot, said those close to the deal. The lease is for seven years.

William Cohen of Newmark Grubb Knight Frank represented Marciano Investment Group, the owners of 292 Madison Avenue. A brokerage team from Jones Lang LaSalle represented QlikTech in the deal. Herald Square Properties manages the building on behalf of ownership.

QlikTech becomes the second notable tech company to move into the newly refurbished 292 Madison Avenue, which has been actively pursuing technology firms since the Marciano Investment Group bought into the building’s ground fee and mortgage in 2011.

FiftyOne ECommerce took the 17th-floor pre-built space, also sized at 6,035 square feet, in March. FiftyOne ECommerce also has a fifth-floor space in the building, with a total footprint at 17,148 square feet.

QlikTech is replacing a law firm that moved out of the 18th-floor space after its lease expired. Read More

Lease of the Week

PreBuilding a New Identity

292 madison web

Billy Cohen, an executive vice president and principal at Newmark Knight Frank, was guiding The Commercial Observer through the construction of a new prebuilt office on the 17th floor at 292 Madison Avenue last week when he honed in on the exquisite lighting throughout the space. Read More