Flagstar Bank Takes Over Signature Bank’s 1400 Broadway HQ
By Rebecca Baird-Remba May 23, 2023 3:16 pm
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Flagstar Bank has assumed Signature Bank’s massive 313,109-square-foot office lease at 1400 Broadway, in the wake of state bank regulators shutting down Signature in March, landlord Empire State Realty Trust announced.
ESRT was unsure what would happen to Signature’s space in the building — which spans 11 floors and accounts for a third of its rentable square footage — but said Tuesday that Flagstar will take over the lease under the same terms, with an agreement running through 2039, according to ESRT.
Flagstar also secured a rent discount of $3 per square foot through the first five years of the lease, which equates to a 1.5 percent rent reduction over the rest of the agreement, ESRT said.
Asking rent for the space last year was $67 a square foot. An ESRT spokesperson did not return a request for comment on Flagstar assuming the lease, and it wasn’t clear whether brokers were involved.
Flagstar parent company New York Community Bancorp acquired $38 billion in Signature’s assets, including 40 retail bank branches, in March, a week after New York financial regulators seized control of Signature amid a bank run.
But questions remained over what would happen to Signature’s office footprint, and ERST executives still weren’t sure during last month’s earnings calls if Flagstar would take over Signature’s 1400 Broadway space.
Flagstar had until May 19 to make a decision on the space. Then the Federal Deposit Insurance Corporation-controlled bridge bank that oversees the rest of Signature’s assets would have had the right to assume or reject the lease by July 10.
Signature had expanded several times over the past few years at 1400 Broadway, a 37-story building between West 38th and West 39th streets near Times Square.
Other tenants in the building include Uber, retail holding company American Exchange Group, and off-price clothing retailer Burlington.
Rebecca Baird-Remba can be reached at rbairdremba@commercialobserver.com.
