Iconic film company Metro-Goldwyn-Mayer has re-upped its lease at 655 Third Avenue for another five years, The Commercial Observer has learned.
MGM, which houses its New York City headquarters in The Durst Organization-owned 655 Third Avenue, will continue to occupy 5,719 square feet on the 27th floor of the building.
Asking rent for the 5-year lease renewal was $58-a-square-foot.
Karen Kuznick of The Durst Organization represented the landlord in-house. A Colliers International team of Steven Jaray, Brian Given, and Christopher Lopez represented MGM.
MGM filed for bankruptcy in 2010 and was rescued by MGM Holdings, a holding company that included Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast and DLJ Merchant Banking Partners as part-owners. The company has since gone on to release the Kevin James comedy vehicle Zookeeper and the upcoming remakes of RoboCop and Poltergeist.
MGM’s lease at 655 Third Avenue was up for renewal and the company decided to remain at the building, where it has been a tenant for the past 6 years, said Ms. Kuznick.
MGM subleased a portion of the 25th floor, sized at 2,163 square feet, to Kettle Hill Capital Management, a financial services firm. Kettle Hill recently inked a new lease for the sublease space for another 3 years. Kettle Hill did not have a broker in the lease renewal.
655 Third Avenue made headlines last week after it re-signed anchor tenant Mitsubishi International Corp. to a 10-year lease, giving the Japanese corporation a total of 122,500 square feet of space in the building.
The Durst Organization renovated the building’s lobby in 2010 to give it a “season 1 Mad Men aesthetic,” said Jordan Barowitz, director of external affairs for the family-owned company.