After its five-year lease expires at 1330 Avenue of the Americas, RXR Realty is moving its New York City offices to another one of its buildings, 75 Rockefeller Plaza, due to a “space crunch,” William Elder, an executive vice president and the managing director in the New York City office, told Commercial Observer.
The landlord has taken the entire 15,000-square-foot 14th floor at 75 Rock between West 51st and West 52nd Streets and Fifth Avenue and Avenue of the Americas, which is undergoing a repositioning. The lease is for 10 years, and the asking rents in the tower floors (floors 10 and up, which are 15,000 square feet each) are somewhere between $113 and $119 a foot, while in the base (where the floors are 30,000 square feet a piece) they are in the high-$80s per square foot, he said.
“We basically took this lease and customized it for 75 [Rock],” Elder said.
At 1330 Avenue of the Americas, which is between West 53rd and West 54th Streets, RXR has had 9,000 square feet, on about half of the fifth floor. The company is expected to move to the new space at the end of the year or at the beginning of 2017.
RXR wanted to move to the 623,000-square-foot 75 Rock, which it controls through a 99-year ground lease, to “go someplace where we own,” Elder said. “The floor kind of laid out perfectly. We still have some leasing to get through there, so we want to show strong commitment to the asset, a strong presence there. It’s kind of centrally located to get to wherever we want to be.”
The repurposed Rockefeller Plaza office building is 40 percent pre-leased, Elder said, and is slated to reopen in late-2016. (75 Rock was made vacant in 2014 when tenant Time Warner’s lease at the building expired.) Those new leases are with Merrill Lynch Wealth Management (125,000 square feet of office space), and American Girl (40,000 square feet of retail space on the ground and concourse levels).
There remains 4,000 square feet of retail space, likely for a high-end restaurant.
There were no brokers involved in the deal.