Lender Varagon Capital Inks 28K-SF Deal to Relocate Within Midtown
By Liam La Guerre November 8, 2017 1:15 pm
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Varagon Capital Partners, an asset manager that focuses on lending to middle-market companies, has signed a 28,316-square-foot deal at Fisher Brother’s 299 Park Avenue to relocate its offices, Commercial Observer has learned.
The lender will occupy the entire third floor of the 42-story, 1.2-million-square-foot building between East 48th and East 49th Streets.
The asking rent in the deal was in the high $80s per square foot, according to a source with knowledge of the transaction. The length of the deal was not immediately clear.
Varagon was formed in 2014 with backing from American International Group and affiliates of Oak Hill Capital Management. It is moving from the 22nd floor of 488 Madison Avenue between East 51st and East 52nd Streets by the end of this year. There the company has 10,360 square feet, according to CoStar Group.
CBRE (CBRE)’s Leo Paytas and Conor Denihan handled the deal for Varagon. Fisher Brothers was represented in-house by Marc Packman and Clark Briffel, and a Newmark (NMRK) Knight Frank team led of David Falk, Peter Shimkin, Andrew Sachs, Eric Cagner and Andrew Peretz. Representatives for CBRE and NKF did not immediately return requests for comment and information.
Fisher Brothers expects to begin a David Rockwell-designed renovation of 299 Park Avenue early next year, which will include a new lobby, revitalized entrance that will allow more light from outside and an illuminated plaza. The work will cost approximately $20 million.
“Our capital improvement program at 299 Park Avenue is going much deeper than a standard refresh and completely transforming the aesthetic of the building with a sleek design and modern feel,” Winston Fisher, a partner at Fisher Brothers, said in a prepared statement. “We are pleased to welcome Varagon to the growing roster of blue-chip tenants [at] 299 Park Avenue.”
Existing tenants in the 1967 building include Capital One (COF) and UBS.
