Blackstone Finalizes Expansion to 1.06M SF at 345 Park Avenue
By Mark Hallum July 17, 2024 12:07 pm
reprints
Blackstone (BX) finalized its deal to expand its footprint at Rudin’s 345 Park Avenue to 1.06 million square feet.
The investment firm, which has the third-largest portfolio of single-family homes in the U.S., signed a deal with Rudin for an additional 250,644 square feet across 28 floors in the 44-story building, the landlord announced. The deal extends Blackstone’s office lease in the property another five years until 2034.
Blackstone has been in talks to make the expansion a reality since at least June. Rudin declined to provide the asking rent in the building, but asking rent was estimated to be between $84 and $103 per square foot in 2021, Commercial Observer previously reported.
“We are expanding our commitment to our New York-based workforce, Midtown Manhattan and New York City with this extension,” Michael Chae, chief financial officer of Blackstone, said in a statement.
345 Park Avenue takes up an entire block between Park and Lexington avenues and East 51st and 52nd streets. Blackstone moved into 70,000 square feet in the building in 1988 and has continually grown since then, including expanding to 489,495 square feet in May 2014, according to Bloomberg.
The expansion brings Blackstone’s total New York City office footprint to 1.4 million square feet, as it also has space at BXP‘s 601 Lexington Avenue.
To ensure that Blackstone’s latest expansion was signed, Rudin said it made the decision to add a fitness and wellness center as well as food and beverage options to accommodate the new workers.
Tom Keating, Robert Steinman and Kevin Daly handled the deal in-house for Rudin while Peter Riguardi, Joseph Messina, Jessica Berkey, William McGarry, Hale King, Cynthia Wasserberger and Carlee Palmer of JLL (JLL) negotiated on behalf of Blackstone.
A spokesperson for JLL did not immediately respond to a request for comment.
Mark Hallum can be reached at mhallum@commercialobserver.com.
