Leases  ·  Office

Insurance Brokerage Inks 34K-SF Direct Deal to Remain in Midtown East Building


Insurance brokerage and consulting company USI Insurance Services has signed a 34,080-square-foot lease at Sapir Organization’s 261 Madison Avenue, Commercial Observer has learned.

The company previously occupied the entire fifth floor and a portion of the sixth floor of the 28-story building between East 38th and East 39th Streets as a subtenant starting in 2012 via a deal with defunct magazine publisher Source Interlink. Now USI has signed a direct deal with the Sapir Organization for the same space, according to information provided by Cushman & Wakefield (CWK). A spokeswoman for the brokerage declined to disclose the terms of the deal.

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USI recently agreed to purchase Wells Fargo (WFC) Insurance Services USA, the insurance brokerage and consulting arm of the bank. That new division is planning to move into USI’s digs.

“USI is a dynamic and fast-growing organization,” C&W’s David Itzkowitz, who handled the deal for the tenant with colleague Jack Keesser, said in a statement. “Their relationship with the ownership of 261 Madison Avenue has been excellent during their time as a subtenant, and the new lease will enable USI to continue on this path for the next several years.”

Existing tenants at the 383,934-square-foot building include Coca Cola North America, Epix Entertainment and Signature Bank.

Sapir Organization completed a more than $15 million renovation of the building last year. It included enhancement of the building’s facade,installation of thermal pane glass windows, upgrades to the lobby and storefronts and modernization of elevators.  

Alex Sapir and Eli Joseb of Sapir Organization handled the deal for the landlord in-house.

“We are very pleased to be continuing the relationship with USI and hope to have them grow in the property over the coming years,” Joseb said in a prepared statement.