New York University’s Schack Institute of Real Estate may soon have to tap into the expertise of its own professors.
The school’s 117K SF lease at 11 W. 42nd St. will expire next June, and it has no plans for renewal, according to special servicer commentary on the building's mortgage shared via Morningstar Credit. Located next to Bryant Park, the building is known as the School of Professional Studies’ Midtown Center.
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Tishman Speyer, which owns the roughly 960K SF tower, has already started touring prospective tenants through the space, according to Morningstar’s database.
NYU debuted in the building in 1979 as an outpost for its School of Continuing Studies, which included its Real Estate Institute. NYU most recently renewed its lease at the property in 2021. It's unclear what the future holds for the Schack school.
Representatives for NYU didn't immediately respond to Bisnow’s request for comment. A Tishman spokesperson declined to comment.
As part of its renewal, which runs for five years and six months, the school received its own entrance, six months of free rent and a tenant-improvement allowance of $30 per SF, the New York Post reported at the time. NYU agreed to pay rents starting at $55.50 per SF that would rise to $61.28.
Since then, Midtown near Grand Central Terminal has become one of the most desired office corridors in the city, with asking rents averaging $76.98 per SF as of the second quarter, surpassing Manhattan’s overall rate of $72.83 per SF, according to Cushman & Wakefield.
Also known as the Salmon Tower Building, 11 W. 42nd St. is nearly fully occupied. Its largest tenant, fashion brand Michael Kors, renewed its 203K SF lease in 2024. The company renovated the space, which serves as its corporate headquarters, prior to the early renewal, according to a 2023 filing with the Securities and Exchange Commission.
First Citizens Bank occupies more than 150K SF of the skyscraper. It moved into the building in 2006 and has a lease that runs through May 2034.
The property is tied to $274M of CMBS debt and a $56M unsecuritized mezzanine loan, according to Morningstar. It was last valued at $555M in 2023.
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