Arsenal Capital Partners, a private-equity firm with offices in Shanghai and New York, had one major stipulation for its new space: It had to be on Park Avenue. That was the dictate given to CB Richard Ellis’ Roshan Shah and Keith Caggiano when they were hired by Arsenal six months ago. It quickly became apparent, however, that in a city of vacancies, Park Avenue is something of an exception. “It’s unbelievable,” Mr. Shah said. He could count the number of spaces in the 10,000-to-15,000-square-foot range on one hand.
Arsenal has also been something of an exception in times when most private-equity firms find themselves rattled. Mr. Shah credited the company’s growth, in part, to a focus on Chinese investments. Among the select few Park Avenue openings, CB Richard Ellis found the firm a full floor-about 11,000 square feet-at 100 Park Avenue, where the asking rent was $70 a square foot. In a new 15-year lease, Arsenal will pay less than what it was paying at 320 Park on a deal signed 15 years ago.
Park Avenue has been the site of major recent migrations from both east-Lexington and Third-and west. According to Mr. Shah, the submarket is “really tight and only getting more so.” He added, “Rents have come down so much, tenants are saying, ‘I used to be paying $60 to be on Third Avenue, now I can be on Park Avenue for $60 a square foot.'”
Landlord SL Green was represented by Paul Glickman of Cushman & Wakefield.