No 20th-century office tower survives in the 21st century because of its historic reputation, architectural features, and landmark status.
Today’s businesses are more appreciative of modern assets in older properties, such as state-of-the-art systems and exclusive tenant-specific amenities.
The latest trophy building to complete a transformative relocation is Harbor Group International’s 51 W. 52nd St., the legendary former home of CBS known as BlackRock.
It was the first and only office tower by architect Eero Saarinen, who also designed John F. Kennedy Airport’s landmark TWA terminal.
The $128 million Black Rock project modernizes a distinctive tower on the East Side of Sixth Avenue with a luxurious lounge-like tenant lobby on the 52nd Street side and 51st Street. A public lobby was born.
But only tenants will enjoy the project’s “fun” element: a basement-level amenity suite that includes a state-of-the-art fitness center, yoga room, and cafe.
All of these changes will generate 325,000 square feet in new and renewed leases, representing 90% of the tower’s 900,000 square feet of leasable area since HGI purchased the tower for $760 million in October 2021. Nearby was leased. No small feat after its original owner, CBS, relocated most of its offices. years ago.
“When the tower opened in 1964, CBS was the most powerful media company in the world,” said Howard Fiddle, head of CBRE’s leasing team. “Columnless floorboards were ahead of their time.”
Black Rock has a small floor space of 25,000 square feet, and the tower is set back from the street, making it “more of a boutique building than a typical building on Sixth Avenue.” Floor-to-ceiling windows provide natural light,” Fiddle said.
Notable tenants in the tower include law firm Wachtel Lipton Rosen & Katz and Canadian pension fund CPPIB, which just moved into the top two floors.
Approximately 135,000 square feet is still available. Asking rents range from $90 per square foot on lower floors to $140 psf on upper floors.
Although not well-known in the city, HGI and its affiliates manage a $20 billion investment portfolio in the United States and Europe.
The revitalization of Black Rock is part of the overall revival of Midtown’s 6th Avenue, which appeared to be facing difficulties before the pandemic when some large tenants, including CBS, announced relocation plans.
But today, the corridor’s vacancy rate is just between 10 percent and 11 percent, depending on which market report you follow, compared to the average for Manhattan as a whole of more than 20 percent. Much of this corridor’s strength is due to the extraordinary investments that major landowners have made in their land.
As previously mentioned, this upgrade includes a complete redesign of the former Time + Life Tower at 1271 Sixth Avenue by The Rockefeller Group and the original locking done by Tishman Speyer. It includes many improvements to the Feller Center complex.
The commercial refinance game is at its toughest these days. But Williams Equities closed on a $155 million, five-year CMBS loan for 28-40 W. 23rd St., familiar to Ladies Mile shoppers with its large Home Depot sign. .
Citi Real Estate Funding is the lender. The new loan will fund building improvements and amenities, including updates to the atrium and skylights, and a rooftop deck spanning the entire length of the building.
A Williams Equities spokesperson said the refinancing is “in line with our successful and timeless multi-generational strategy.”
Office tenants at the 578,105-square-foot 28-40 W. 23rd, a former department store, include a number of creative, digital and technology companies.
