Non-public fairness heavyweight Carlyle Group is bulking up in Midtown.
The funding agency signed leases totaling over 200,000 sq. toes throughout two Park Avenue towers, together with a 150,000-square-foot deal at SL Inexperienced Realty’s 245 Park Avenue, the Business Observer reported. The ten-year lease in Midtown indicators continued demand from finance tenants for high-end workplace area close to Grand Central.
Carlyle additionally picked up one other 52,000 sq. toes at Irvine Firm’s 200 Park Avenue, higher referred to as the MetLife Constructing. At that property, Carlyle will share a part of the fourth flooring with MetLife, which renewed roughly 400,000 sq. toes within the constructing in 2023.
Collectively, the transactions add as much as about 202,000 sq. toes and symbolize enlargement fairly than relocation; the agency is preserving its present 195,000-square-foot area at SL Inexperienced’s One Vanderbilt, the place it occupies a number of flooring within the trophy tower.
At 245 Park Avenue, asking rents had been about $175 per sq. foot. The MetLife Constructing area commanded asking rents nearer to $100 per sq. foot, underscoring the pricing hole between Park Avenue’s renovated however older inventory and the latest trophy towers like One Vanderbilt, the place asking rents can exceed $300 per sq. foot.
Brokerage groups from Cushman & Wakefield represented SL Inexperienced within the 245 Park transaction, whereas CBRE dealt with leasing for Irvine Firm at 200 Park. Carlyle was represented by JLL.
The deal provides momentum to leasing exercise for SL Inexperienced, which has been working to fill area throughout its Midtown portfolio. The owner lately signed a 16-year enlargement with legislation agency McDermott Will & Emery for roughly 30,000 sq. toes at One Vanderbilt, bringing the agency’s footprint there to about 200,000 sq. toes.
SL Inexperienced additionally landed funding advisory agency Cliffwater for almost 38,000 sq. toes at 245 Park Avenue.
The agency acquired the 1.7-million-square-foot 245 Park Avenue property out of chapter in 2022 and offered 50 % of the fairness in 2023 to Japanese developer Mori Belief in a deal that valued the tower at $2 billion. SL Inexperienced is looking to sell a 25 % stake.
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