Banco Itaú Takes Most of the GM Building’s 50th Floor in an Unprecedented Deal
Michael Ewing May 31, 2013, 4:51 p.m.
In an unprecedented deal that reached upwards of $200 per square foot, Itaú BBA USA Securities Inc., a branch of the Brazilian Banco Itaú, will increase its operation from 25,000 square feet to 35,000 square feet on the prized 50th floor of 767 Fifth Avenue.
With outstanding views of the Central Park and Midtown, the floor plates at the 50-story tower, otherwise known as the General Motors Building, span 40,000 square feet, leaving a mere 5,000-square-foot office to share the view, brokers said.
Boasting some of the highest rent in the city, the asking rent rivals 9 West 57th Street, another Plaza District gem. Its retail presence also commands some of the highest rents in the world with rents for street-front spaces running more than $1,000 per square foot along the Fifth Avenue Corridor.
Located at the top of the Fifth Avenue Corridor and the heart of the Plaza District, 767 Fifth Avenue’s expansive plaza is one of the city’s most popular tourist attractions, housing both Apple‘s “cube” store and New York’s FAO Schwarz, which relocated to the space in 1986 as the company underwent management changes.
The building itself has also faced its fair share of management changes as well. In a struggle with its lenders, the Macklowe Organization put the building up for sale in early 2008. It was sold a few months after for $2.8 billion to a joint venture between Boston Properties, Goldman Sachs’ Real Estate Opportunities Fund, and Meraas Capital, the investment arm of U.A.E.-based Meraas Holding.
John Maher and John Powers, both from CBRE, represented the joint venture in the transaction. Michael Burgio of Cushman & Wakefield represented Banco Itaú.
None of the brokers involved in the transaction responded to several requests for comment.