Morgan Stanley, Tiger Management to Vacate 102K SF at 101 Park Avenue
By Isabelle Durso September 5, 2024 2:53 pm
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Peter Kalikow has some trouble brewing at 101 Park Avenue, with two major tenants — Morgan Stanley (MS) and Tiger Management — set to vacate a total of 102,000 square feet of office space.
Tiger, which leases 52,800 square feet at the property, will end its agreement at the end of September, while Morgan Stanley, which occupies about 49,200 square feet, is set to leave in December, according to a report by the Kroll Bond Rating Agency (KBRA). Crain’s New York Business first reported the news.
The 1.3 million-square-foot tower’s vacancy rate will nearly triple following those departures, and the two tenants account for nearly one-quarter of the building’s revenue, according to KBRA. 101 Park Avenue is owned by H.J. Kalikow & Company, a family-run business where Peter Kalikow serves as president.
Next moves for the tenants were unclear. Spokespeople for Morgan Stanley and Tiger Management did not immediately respond to requests for comment.
The property, which backs a $365 million mortgage loan that matures in August 2028, was 95 percent occupied as of the first quarter of this year, according to data provider Trepp. After Tiger and Morgan Stanley’s departure, that occupancy rate will drop to 86 percent, Trepp said.
Kalikow, former chairman of the Metropolitan Transportation Authority, has cultivated relationships with tenants at 101 Park Avenue after offering long-term leases and below-market rents, Crain’s reported. But several major investment firms have started to relocate as more office space goes on the market in New York City, leaving their old digs — and Kalikow — in the dust.
However, Kalikow’s firm could have some deals in the works.
“We are currently discussing with a number of potential tenants, including existing ones, their interest in taking over space currently occupied by Morgan Stanley in 2025 and our top two floors,” a spokesperson for Kalikow’s firm told Commercial Observer. “In fact, proposals have been exchanged with prospective tenants on much of the soon to be vacated space.”
Morgan Stanley has expanded its footprint at 101 Park Avenue since 2013, when it signed a renewal for 39,000 square feet across the 23rd and 24th floors, as CO previously reported. Tiger has seemed to downsize since that time, as the firm signed a renewal in 2013 for 79,200 square feet on the 33rd, 47th and 48th floors.
“101 Park Avenue has always been and continues to be a property where our tenants are able to provide their employees and clients the best environment possible for conducting business,” Kalikow said in a statement at the time. “I am proud of the fact that 101 Park Avenue has such a prestigious roster of tenants who recognize value and stay for a long time.”
While two major tenants will be gone by the end of the year, several companies still have their home at 101 Park Avenue, including law firm Morgan Lewis and The Federal Home Loan Bank of New York.
Isabelle Durso can be reached at idurso@commercialobserver.com.
