Investment Firm Ares Management Expands to 307K SF at 245 Park Avenue
By Abigail Nehring July 17, 2024 1:18 pm
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Alternative investment manager Ares Management (ARES) outgrew its Park Avenue office and added three more floors.
Ares signed a 15-year lease to grow its footprint to 307,336 square feet across the top eight floors of SL Green (SLG) Realty and Mori Trust Company’s 245 Park Avenue, according to a source with knowledge of the deal.
The firm tacked on three new floors totaling 131,749 square feet to its longtime 175,587-square-foot headquarters, which will now span floors 37 through 44 at the 44-story office tower, the source said. The deal was first reported by Bloomberg.
Asking rent in the lease is unclear, but asking rent on a lower floor of the building was $145 per square foot in a deal inked earlier this month, the New York Post reported.
CBRE (CBRE)’s Christopher Corrinet, Lewis Miller, Michael Geoghegan, Munish Viralam and Cara Chayet arranged the deal for Ares along with Savills‘ Jeffrey Peck, Daniel Horowitz, John Bertram, Roi Shleifer and Jacob Sternand. Spokespeople for Savills and CBRE declined to comment.
SL Green was represented by Cushman & Wakefield’s Patrick Murphy, Bruce Mosler, Tara Stacom, Harry Blair, Ron LoRusso, Justin Royce, Pierce Hance and Will Yeatman. A spokesperson for C&W did not respond to a request for comment.
Ares was founded in 1997 and manages $428 billion worth of assets, according to its website. It’s unclear when Ares moved into 345 Park, but it has been at the property for more than a decade, according to its Securities and Exchange Commission filings.
In addition to its New York headquarters, Ares has outposts in 35 locations around the globe and recently inked a 206,000-square-foot deal to relocate its Los Angeles office to 1800 Avenue of the Stars, as Commercial Observer previously reported.
The firm’s expansion at 245 Park is welcome news for SL Green and Japanese developer Mori Trust after a rating agency put investors on alert that the landlords might be at risk of falling behind in paying off $1.8 billion debt tied to the property, Crain’s New York Business reported earlier this year. And it wasn’t the only sizable lease signed at the 1.8 million-square-foot property this month as business marketplace platform Tradeweb Markets took 75,823 square feet, as CO previously reported.
Update: This story has been updated to correct that Ares signed a 15-year lease.
Abigail Nehring can be reached at anehring@commercialobserver.com.
