Carlyle Group Inks 94K-SF Lease at SL Green’s One Vanderbilt
Private equity giant The Carlyle Group is the latest tenant to commit to SL Green Realty Corp.’s One Vanderbilt office development after signing a lease for more than 94,000 square feet across three floors at the building currently under construction next to Grand Central Terminal, SL Green (SLG) announced.
Carlyle inked a 15-year deal to take the 36th through 38th floors at the massive 55-story, 1.7-million-square-foot office tower, which spans the entire Midtown block bound by East 42nd and East 43rd Streets and Madison and Vanderbilt Avenues and will stand 1,401 feet when it opens in 2020.
In May, Crain’s New York Business reported that the Washington, D.C.-based private equity firm was in talks to move its New York offices to One Vanderbilt, though the publication indicated Carlyle was eyeing roughly 160,000 square feet across five floors.
Carlyle currently has Manhattan offices at Fisher Brothers’ 299 Park Avenue and Tishman Speyer’s 520 Madison Avenue. According to The New York Post—which first reported today’s news of Carlyle’s finalized 94,367-square-foot lease at One Vanderbilt—it is not clear whether the company will retain a footprint at either of its current Midtown locations or consolidate entirely at the SL Green property.
The deal with Carlyle takes One Vanderbilt to 37 percent leased and means SL Green has met its year-end leasing goal for the office tower five months early, the landlord said in a press release announcing the transaction. The private equity firm joins financial firms TD Bank and DZ Bank and law firms Greenberg Traurig and McDermott Will & Emery in committing to space at the Kohn Pedersen Fox-designed office tower, which will also feature a restaurant by celebrity chef Daniel Boulud.
“Carlyle’s decision to locate their primary New York City offices at this world-class building reaffirms our belief in East Midtown as the city’s premier business destination,” SL Green CEO Marc Holliday said in the press release. Holliday added that construction on One Vanderbilt is “ahead of schedule,” with the building slated to open five weeks ahead of its projected completion date in the third quarter of 2020.
In a statement, Christopher Finn, Carlyle’s global head of operations, described the building as “a state-of-the-art, amenity-driven building in the heart of Midtown that will provide a welcoming and productive environment for our employees.”
Asking rent in Carlyle’s deal at One Vanderbilt was not immediately clear. A spokesman for SL Green declined to comment on financial terms.
CBRE (CBRE)’s Robert Alexander, Ryan Alexander, Sarah Pontius and Emily Jones represented the landlord in the transaction, while JLL (JLL)’s Greg Lubar, Steven Rotter, Joseph Messina, Steven Spartin, Jessica Berkey and Andrew Lutzer represented Carlyle. Representatives for CBRE and JLL did not immediately provide comment.