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If 575 Fifth Ave isn’t an especially familiar address, that might be because the building has barely had any space on the market since 1984.
We got a first look this week at the building’s marketing center on the 30th floor—the first raw floor to open up in the 35-story tower since L’Oreal announced it will be leaving 360k SF available when it heads to 10 Hudson Yards.
MetLife owns the Class-A property and, since August of last year, Beacon Capital Partners has owned a 49% stake in an office condo comprising all of the building's 520k rentable SF.
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“It’s been a sleepy building that’s never had space on the market. It is a hidden gem in the middle of Midtown,” says CBRE’s Gregg Rothkin, who's on the team with the leasing assignment for the building.
A renovation of the lobby, building canopy and elevator cabs will be finished by the time L’Oreal packs up and heads for the far West Side in August. Each floor of the LEED Gold certified building will be renovated to new tenants’ specs, Gregg says.
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The floor plates are an elongated side-core and aren’t huge, ranging from 23k SF in the base to 15,500 SF in the mid-rise and tower, with the core off to one side.
Beacon Capital’s Chris Gulden says he expects that configuration to be a perfect fit for financial services and creative firms that don’t need massive floor plates, but are looking to densify and may want to be near Grand Central, which is about a five-minute walk away.
Something else new tenants will be near: a transforming stretch of Fifth Avenue. Directly across the street, Extell Development recently completed an assemblage along Fifth Avenue, and has so far kept mum about what’s planned for the site, which reportedly comes with upwards of 200k SF of development rights.
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Barney’s New York, Westpac Banking Corp and Northwood Investors have all renewed their leases at 575 Fifth Ave. While Chris didn’t tell us asking rents at 575 Fifth, he said they won’t be competing with the stratospheric numbers seen in buildings like 9 West 57th St or 425 Park Ave, which can each fetch over $200/SF for office space.
He tells us the building’s direct competition includes SL Green’s Tower 46, just on the other side of Fifth Avenue, which reportedly asked $100/SF for a lease this past fall to bring hedge fund Fir Tree into a 31k SF spread.
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