Risk Advisory Firm K2 Integrity Subleases 40K SF at 730 Third Avenue

TIAA’s sublease expires in 2035, and TIAA has never occupied the space, according to Savills.

“It was no secret that the COVID-19 pandemic significantly impacted the sublease market as there was an influx of inventory. However, while options were plenty, high-quality, move-in-ready sublease spaces were rare,” Savill’s David Carlos, who represented K2 with Andrew Dzenis, said in a statement. “After a thorough search, we identified the ‘needle in the haystack,’ and swiftly negotiated a favorable deal to relocate K2 and its employees to Third Avenue’s premier building.”

TIAA was represented by Scott Vinett at JLL (JLL). Asking rents were in the mid-$60 per square foot range. A spokesperson for JLL did not immediately respond to a request for comment.

K2’s new deal will help accommodate the firm’s swelling ranks after the recent acquisition of Financial Integrity Network, according to Savills.

Nuveen Real Estate, which is a subsidiary of TIAA, and Taconic Partners in the last few years have pumped $120 million into a renovation of the 27-story 730 Third, which has served as TIAA’s headquarters since the 1950s. And while it occupies 300,000 square feet on the third through ninth floors, it has planned to sublease most of that. 

The renovation project set tenants up with a double-height lobby with a second-floor mezzanine for access to amenities such as a gym, a conference center, a lounge and a food hall with in-house catering, Commercial Observer reported in 2021.

The renovation also gives tenants access to a 7,000-square-foot landscaped terrace on the 22nd floor.

Mark Hallum can be reached at mhallum@commercialobserver.com.