Flagstar Bank Leases 59K SF at 320 Park Avenue
By Mark Hallum January 8, 2024 4:56 pm
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Flagstar Bank is raising its banner in Midtown East after leasing 59,000 square feet of office and retail space on Park Avenue, Commercial Observer has learned.
The financial institution, which acquired Signature Bank’s deposits from the Federal Deposit Insurance Corporation after the regional banking crisis in March, took 54,500 square feet of office on the second and third floors of Mutual of America Financial Group and Munich Re’s 320 Park Avenue, according to a source with knowledge of the deal.
Flagstar also signed on for 4,500 square feet of the building’s retail space on Park Avenue and East 51st Street, a site previously occupied by First Republic Bank, the source said. First Republic, Signature and Silicon Valley Bank all collapsed or were seized in March 2023.
The terms of the deal were not disclosed, but asking rent for offices in the building ranges between $100 and $125 per square foot, according to the source.
Frank Doyle, David Kleiner and Carlee Palmer of JLL (JLL) represented the landlord in the deal while Michael Cohen, Howard Kaplowitz and Andrew Roos of Colliers (CIGI) negotiated on behalf of the tenant. Spokespeople for JLL and Colliers did not immediately respond to a request for comment.
In May 2023, Flagstar assumed Signature Bank’s 313,109-square-foot office lease at Empire State Realty Trust’s 1400 Broadway, which expires in 2039. It wasn’t immediately clear whether Flagstar would be moving from these offices entirely or is opening a satellite office.
The deal follows $35 million in capital improvements made to the building. Improvements include a renovated lobby, a new café, a full-service amenity center, a fitness center, and a new terrace on the 16th floor overlooking Park Avenue.
Mutual of America has leased about 252,000 square feet in the 34-story building since 1998 and further committed to the property in 2022 when it acquired a 25 percent stake in it.
Update: This story has been updated to correct that Flagstar leased 54,500 square feet o office space and 4,500 square feet of retail at 320 Park Avenue.
Mark Hallum can be reached at mhallum@commercialobserver.com.
