• 1-800-123-789
  • info@webriti.com

Category ArchiveSage Realty Corporation

Wells Fargo Renews Flagship Branch Lease in Midtown East

Wells Fargo has renewed its lease for its long-time flagship location at 437 Madison Avenue, Commercial Observer can first report.

The bank signed a five-year renewal for its 7,206-square-foot space at the William Kaufman Organization building, which spans the blockfront between East 49th and East 50th Streets. The lease includes 4,328 square feet of retail space on the ground floor and 2,878 square feet for offices on the lower level. The asking rent was $500 per square foot for the ground-floor space, a WKO press release indicates.

Wells Fargo has been a tenant in the 40-story, 850,000-square-foot building since 2003.

Michael Lenchner of Sage Realty Corporation, the leasing and management division of WKO, represented the landlord in the deal. In a prepared statement, Lenchner touted the building’s “visibility, high foot traffic and the convenience of being in close proximity to Rockefeller Center and Grand Central Terminal.” CBRE’s Annette Healey represented Wells Fargo. A CBRE spokeswoman said the broker declined to comment.

In 2016, Sage Realty completed a $60 million building-wide redevelopment of the property, which includes a redesigned lobby and arcade area, a new plaza, renovated elevators, upgraded building systems and a 15th-floor “sky lounge” with outdoor conference rooms and sunrise yoga classes.

WKO owns the building with Travelers Companies (the former developed the property and Travelers has been a partner since 1994). Tenants include Mitchell Silberberg & Knupp, which signed a lease for more than 18,500 square feet last month, as well as Citizens Bank, Omnicom Group, Medallion Financial, Kekst and Company and Carnegie Corporation of New York.

Source: commercial

Entertainment Law Firm Mitchell Silberberg Moving Within Midtown East

Mitchell Silberberg & Knupp, a Los Angeles-based law firm, has signed an 18,650-square-foot deal at William Kaufman Organization’s 437 Madison Avenue to relocate its offices, according to the landlord.  

The law practice, which was founded in 1908, will occupy the entire 25th floor of the  40-story, 850,000-square-foot building between East 49th and East 50th Streets.  

The firm is mostly known for its ties to the entertainment industry and includes areas of focus such as digital media, intellectual property, corporate law and immigration, according to its website and is currently located nearby at 12 East 49th Street (also known as Tower 49) between Fifth and Madison Avenues. Mitchell Silberberg will move in August; the length of the deal is for 15 years, and asking rents in the building range between $82 per square foot and $110 per square foot.

Besides it’s Los Angeles and New York City digs, Mitchell Silberberg also has an office in Washington D.C.

The deal highlights “the special position that our property is in and reflects the ongoing resurgence of Midtown East,” Michael Lenchner, a vice president at Sage Realty Corporation—the leasing and management division of William Kaufman—said in prepared remarks.

Lenchner worked on the transaction for the landlord in-house alongside JLL’s Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster. Jared Freede of CBRE, who handled the deal for Mitchell Silberberg, did not immediately return a request seeking comment.

The New York Post first reported news of the transaction.

Source: commercial

As Goldman Sachs Shrinks at 77 Water, Law and Engineering Firms Ink Direct Deals

National law firm Lewis Brisbois Bisgaard & Smith has inked a new 100,000-square-foot lease at 77 Water Street, where it previously subleased space from Goldman Sachs, according to a release from the landlord.

The owners of the Financial District tower, William Kaufman Organization and Principal Real Estate Investors, have been striking new deals with long-term tenants who had subleased from Goldman Sachs.

In 2001, Goldman Sachs triple-net-leased the entire 600,000-square-foot building (with two different termination dates in 2018 and 2021). The financial giant never occupied the tower, and instead subleased the property to several tenants, including Lewis Brisbois. Goldman’s lease on the upper floors of the building will expire on March 31, 2018. Lewis Brisbois’ direct lease with Sage Realty Corporation, Kaufman’s leasing arm, will begin the next day.

The law firm currently occupies 75,000 square feet on the 19th through 21st floors on a 2010 sublease from Goldman. Its new 15-year deal includes that space and adds the 18th floor, as The Real Deal first reported.

“Lewis Brisbois is pleased that 77 Water Street will continue to be our firm’s New York home,” said Gregory S. Katz, the managing partner of Lewis Brisbois’ New York office. “The location in the heart of the Downtown business and Financial District is ideally situated among the majority of our New York client base.”

Engineering firm Arup is also expanding its footprint in the 24-story building. It currently fills 97,400 square feet on the mezzanine through sixth floors on a 2012 sublease from Goldman Sachs that will expire in 2021. The company just inked a direct, three-year lease with the landlords for 25,286 square feet on the entire 25th floor.

Jonathan J. Larsen and Mitti Liebersohn of Avison Young represented Lewis Brisbois, and Ken Fishel and Jessica Jaber of Legacy NY Commercial Real Estate represented Arup. Michael Lechner of Sage Realty Corporation represented the landlord in both transactions.

“We are delighted that Lewis Brisbois and Arup have recommitted to the property for many years to come,” Lechner said in the release. “It truly speaks volumes about their confidence in Sage Realty as we embark on a new era for this iconic downtown asset.”

Larsen said that 77 Water was particularly attractive to law firms because it was near the county courthouses and several subway lines. “After numerous discussions with our client on the ideal long-term New York City location, it became obvious that the firm’s current space, along with a prominent identity at 77 Water Street, ideally suited the company’s needs, and its goal was to commit to a multi-year renewal,” he added in a statement. “Negotiating with the building’s owner and representatives was a seamless process, and we were able to ink a deal that met all of our client’s requirements.”


Source: commercial

Reinsurance Firm Grows NYC Presence With 19K-SF Lease at 437 Madison Avenue

Reinsurer Munich American Reassurance Company is expanding its New York office footprint after agreeing to take 18,650 square feet of space at the William Kaufman Organization’s 437 Madison Avenue in Midtown.

Munich American, a subsidiary of German reinsurance giant Munich Re Group, signed a 10-year deal for the entire 26th floor of the 40-story, 850,000-square-foot property between East 49th and East 50th Streets, William Kaufman said in a press release Tuesday announcing the transaction.

Asking rent in the Munich American deal was $90 per square foot, sources said, with asking rents at 437 Madison Avenue ranging from $80 to $110 per square foot, according to William Kaufman. The New York Post first reported the news of the transaction.

The reinsurance company plans to use the new space to accommodate its “rapidly expanding” financial reinsurance and integrated analytics teams, as well as grow its actuarial capabilities by “tapping into the strong actuarial talent pool that exists in the New York insurance and reinsurance market,” Mike DeKoning, the president and chief executive officer of Munich American, said in a statement.

Munich American presently occupies 24,625 square feet comprising the entire 15th floor at Silverstein Properties1177 Avenue of the Americas, according to CoStar Group data. It will retain that office and plans to assume the space at 437 Madison Avenue by the fourth quarter of this year.

Nick Zarnin and Craig L. Lemle of Savills Studley represented Munich American in the deal, while Michael Lenchner of Sage Realty Corporation—William Kaufman’s leasing and management division—and a JLL team of Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster represented the landlord.

Zarnin confirmed the transaction to Commercial Observer, noting that Munich American was drawn to the property’s location “within proximity of their current employees” at 1177 Avenue of the Americas.

He also said the reinsurance company has “a strong bit of flexibility” as far as options to expand its space in the future if needed, and added that William Kaufman was “willing to build out the space for the client” while covering the entire cost of doing so.

“We’re giving them a [floor] plan, and they’re going to build the space to our plan using their building-standard finishes,” Zarnin said.

William Kaufman also announced two separate, smaller transactions for office space at 437 Madison Avenue: a seven-year deal with alternative investment firm Eos Management for 9,576 square feet on a portion of the 14th floor; and a 7,458-square-foot expansion by law firm Montgomery McCracken Walker & Rhoads, which now has 35,755 square feet at the property comprising the entire 23rd and 24th floors.

Eos Management, which plans to move from its current offices at 320 Park Avenue in the third quarter, was represented by Lindsay Ornstein and Lauren Davidson of Transwestern. Montgomery McCracken—which inked its initial 28,297-square-foot direct lease at the building in December—had no broker on its deal.

Sage Realty’s Lenchner attributed William Kaufman’s recent success in leasing up 437 Madison Avenue to a recently completed, $60 million capital improvement program at the 50-year-old office tower. The building now has a redesigned lobby and arcade area, renovated elevators, upgraded building systems and a new “sky lounge” on the 15th floor featuring outdoor conference rooms.

“These new leasing transactions further demonstrate the ongoing resurgence of the Grand Central office district, the quality of our building and our convenient and desirable location,” Lenchner said in a statement.

Earlier this year, William Kaufman signed investment firm Lighthouse Investment Partners to a 17,750-square-foot lease for the entire 21st floor at the building, as CO first reported. The landlord also signed another financial services tenant, Prelude Capital, to a 19,524-square-foot renewal and expansion for portions of the 33rd and 34th floors late last year.

Other tenants at 437 Madison Avenue include Omnicom Group, the Carnegie Corporation of New York and Medallion Financial Corp.


Source: commercial