Jennison Associates has renewed its lease at 237 Park Avenue and expanded by 20,000 square feet.The investment firm’s existing 146,000-square-foot space will be increased to 166,000 square feet across three floors of the building.
The tenant, a wholly-owned subsidiary of Prudential Financial, has renewed its lease for 10 years, according to Crain’s New York Business, which first reported the deal. Asking rent for the space was in the $80s per square foot.
Owned by RXR Realty, an affiliate of Walton Street Capital, LLC, since October 2013, 237 Park Avenue boasts 1.25 million square feet of space.
A $50 million renovation to the building’s lobby and 21-story atrium is under way, which will produce opportunities for retailers to lease larger, two-floor spaces with greater visibility to potential customers on Lexington Avenue in comparison to those previously available. Commercial Observer unveiled renderings of the repositioned property earlier this week.
“We certainly recognize the value of retaining and expanding such a highly regarded tenant in our building, and this new lease and early renewal reinforces our investment and repositioning thesis for this truly great building,” said William Elder, RXR’s executive vice president and managing director for New York City, in a prepared statement. “Clearly Jennison found value in the work, as well as the strong partnership of the RXR/Walton Street Capital ownership.”
Edward Lederman of CBRE represented Jennison in the renewal, while Mr. Elder and Lauren Ferrentino of RXR represented the landlord in-house.
In addition to properties spanning New York City, Long Island, New Jersey and Westchester and Connecticut, RXR’s portfolio includes two other office buildings closely neighboring 237 Park Avenue and Grand Central, at 450 Lexington Avenue and 340 Madison Avenue.
Representatives from RXR declined to comment further on the deal.