BXP Lands Law Firm For 150K SF At 343 Madison: The N.Y. Deal Sheet
BXP has signed another huge lease at its under-construction Madison Avenue trophy office.
McDermott Will & Schulte signed a 150K SF lease at 343 Madison Ave., spanning floors 31 through 37 of the 930K SF, 46-story tower sprouting up between 44th and 45th streets.
The law firm, one of the 20 biggest in the U.S. by annual revenue, expects to move into the space, which will have more than 330 offices, conference facilities and an outdoor terrace, by October 2029.
The lease follows a 275K SF deal in the Madison Avenue office tower with investment and insurance firm Starr, which the company struck with BXP in January.
Chicago-based McDermott Will & Schulte is also expanding by one floor at One Vanderbilt, where it leased 146K SF in 2021, to create 175 new offices by next June. The creation of a two-building NYC campus, connected via Grand Central Terminal, follows McDermott Will & Emery's acquisition of New York-based Schulte Roth & Zabel last year.
“New York sits at the heart of this combination and remains the best market in the world for high-end legal work,” McDermott Will & Schulte Chairman Ira Coleman said in a statement.
McDermott Will & Schulte also kicked off construction of a new office building in Washington, D.C., by signing a 150K SF prelease last January, allowing BXP — which acquired the property only weeks earlier — to start demolition and redevelopment.
TOP LEASES
Fashion company Haddad Brands' real estate arm, Hadson Realty, signed five tenants to a total of 165K SF at 2 Park Ave. The biggest deals were with transit tech company Via Transportation, which took 55K SF, and artificial intelligence-powered advertiser Cadent, which signed for 50K SF. Savills’ Erik Schmall and Allyson Bowenwith represented Via, while Newmark’s Aaron Ellison and Adam Spector repped Cadent.
Other deals at the 1.2M SF Midtown South tower were with virtual behavioral health provider Charlie Health for 28K SF, The City University of New York for 22K SF and economic advisory firm Oxford Economics for 10K SF. JLL’s Mitch Konsker, Cynthia Wasserberger, Kristen Morgan and Michael Pallas and Haddad Brands’ Franco Rauseo represented building ownership.
***
The New York City School Construction Authority leased 54K SF at Simone Development’s under-development, three-story, 362K SF building at 1776 Eastchester Road. The SCA will use the two floors to house its Bronx Science, Technology, Engineering, Arts and Mathematics Center. Simone Development used its in-house brokers.
***
Private equity firm Kohlberg & Co. leased 19K SF at SL Green’s 500 Park Ave., bringing the 201K SF tower to 100% leased. Other tenants include Vera Wang, The Georgetown Co. and Friedland Properties. JLL’s Paul Glickman and Kristen Morgan represented the tenant, while the brokerage’s Cynthia Wasserberger and Michael Pallas represented SL Green.
***
GFP Real Estate signed workspace operator The Malin to 19K SF at 10 Astor Place. The 156K SF, seven-story building will house The Malin’s eighth NYC location. David Kaye and Neith Stone represented GFP in-house. Rue’s John Mears represented the tenant.
TOP SALES
David Werner Real Estate Investment closed on its $270M buy of One Dag Hammarskjöld Plaza, an 870K SF, 50-story Midtown office at 885 Second Ave., according to a release. JPMorgan loaned $250M to Werner’s firm for the acquisition, which is roughly half of what seller Rockpoint paid in 2019, The Real Deal reported. Tishman Speyer's debt fund acquired a $40M mezzanine loan as well. Werner, along with partner 601W Cos., plans to invest $60M upgrading and leasing the property, bringing its total capitalization to $330M. Newmark’s Adam Spies, Adam Doneger and Willis Robins represented Rockpoint in the sale. The brokerage’s Jordan Roeschlaub, Nick Scribani and Tim Polglase arranged the financing.
***
GO Residential REIT closed on its acquisition of 183-185 Broadway and 7 Dey St., a retail condo and a 209-unit apartment tower, from SL Green, PincusCo reported. SL Green's announced the sale in March at a price of $222.6M. Property records show a slightly lower transaction total of $220.5M, with GO Residential paying $190M for the 183K SF apartment tower and $30.5M for the 16K SF retail space.
***
Hawkins Way Capital spent $80M on 117 W. 70th St., a former Upper West Side hotel currently serving as student housing, Commercial Observer reported. The seller of the 10-story building was The American Musical and Dramatic Academy, which has owned the property since 1996.
***
CSC Real Estate bought a Yorkville office and retail building at 210 E. 86th St. from Perlbinder Realty for $70M, PincusCo reported. The deal was split into two transactions, with CSC spending $64.1M on the office portion and $5.9M for the retail. CSC is expected to renovate the building, including Weill Cornell Medical’s medical space, by adding eight apartments on the fifth floor and a movie theater in the retail space. The New York State Supreme Court oversaw the sale and partitioned the properties following disagreements about Perlbinder's property management.
TOP FINANCING DEALS
Moinian Group refinanced 110 John St., a recently completed 250-unit apartment building in the Financial District, with a $240M loan from Acore Capital, PincusCo reported. The mortgage replaces a $169M construction loan from BDT & MSD Partners.
***
L+M Development Partners and Harlem Congregations For Community scored a $86.9M construction loan from M&T Bank for a 105-apartment building at 31 Central Park N. in Harlem, PincusCo reported. The building will replace the Lincoln Correctional Facility, for which the New York state government issued a request for proposals in 2023.
***
Zions Bancorp. loaned $94.5M to Alma Realty to refinance three Far Rockaway multifamily buildings, PincusCo reported. The portfolio is composed of a 265-unit building at 107-10 Shore Front Parkway, a 240-unit building at 106-20 Shore Front Parkway and a 265-unit building at 1 Beach 105th St. The loan replaces a $92.5M mortgage from Deutsche Bank.
