Leasing Activity Remains Steady at Boston Properties’ 510 Madison
Financial services tenants have been flocking to Boston Properties (BXP)’ 510 Madison Avenue and three recent deals indicate interest remains high, despite triple-digit rents. The Canada Pension Plan Investment Board, 400 Capital Management and Prosiris Capital Management have all signed 10-year, 11,500-square-foot full floor deals in the building, a source familiar with the transactions confirmed with The Commercial Observer.
The Canada Pension Plan Investment Board, with over $183 billion in assets under management, will open its first New York office later this year on the 15th floor at 510 Madison Avenue. The pension fund currently operates offices in Toronto, London and Hong Kong.
Credit investment specialist 400 Capital Management, currently located at 12 East 49th Street, will move in to 510 Madison’s 17th floor at year’s end. The new deal is an expansion on the firm’s current space at Tower 49.
Elsewhere in the building, Prosiris, another credit-based investment manager, secured a deal for the entire 20th floor. The fund, founded by Reza Ali, a former managing director and head of the Americas Principal Funding and Investments Group at Goldman Sachs (GS), had previously been based at 529 Fifth Avenue.
As reported by The Commercial Observer, LH Financial signed a 10-year lease for 6,553 square feet at 510 Madison earlier this year. Asking rents in that deal, as with the most recent deals at the Boston Properties’ building, were $100 per square foot.
Developed by Harry Macklowe and targeted toward hedge funds and boutique financial services companies, the 355,598-square-foot Class A building at 510 Madison Avenue features an executive fitness center, lap pool and a 6,500-square-foot garden terrace. Boston Properties acquired 510 Madison Avenue from Mr. Macklowe for over $280 million in 2011.
Sam Seiler and David Hollander of CBRE represented 400 Capital Management. CPPIB was represented by Paul Amrich and Neil King, also of CBRE. Prosiris was represented by Cynthia Wasserberger and Randy Abend of Jones Lang LaSalle. The landlord was represented by Mr. Amrich and Christie Harle.