The MetLife Building, the crown jewel of the Grand Central East Midtown office district, is set to bring all of its assets under a single owner and manager, Realty Check has learned.
In a move that surprised industry insiders, CBRE secured triple crown status for the office tower, acting as property manager, asset manager and leasing agent.
The commercial brokerage and services firm will take over Tishman Speyer’s role at the Irvine Company’s 3 million-square-foot tower, formally located at 200 Park Ave. Tenants learned of the news this week in an internal company memo.
CBRE will now oversee everything at the iconic skyscraper, from long-term and short-term financial strategies to cleaning the floors. Additionally, CBRE has renewed the lease for 180,000 square feet through 2037.
The deal marks the end of nearly two decades of investment by Tishman Speyer in 2005, when it bought 200 Park Avenue for $1.7 billion. The company later brought Irvine on as a joint venture partner and gradually reduced its stake to a tiny percentage.
“We are extremely proud of our management and redevelopment of 200 Park Avenue and the significant return we have achieved for our investors,” a Tishman Speyer spokesman said.
“Irvine has informed us that it intends to exercise its contractual rights under the 2014 joint venture agreement to purchase our remaining shares and manage the property. We thank them for their partnership and wish them the best in the future.”
Irvine has 54 million square feet of premium office space nationwide, but 200 Park Avenue is its only Manhattan retail property. Tenants include the headquarters of Metropolitan Life Insurance Company and the law firm of Gibson, Dunn, Winston & Strawn.
Defying the conventional wisdom that only new build “Triple A” properties can succeed in today’s market, the 62-year-old building formerly known as the Pan Am Building is 97 percent leased.
Its success is due in large part to its ongoing efforts to modernize and meet the needs of the 21st century.
“Tishman Speyer is a first-rate firm. They led the $200 million renovation, introducing incredible hospitality features to the building, including a flagship restaurant, redesigned lobby and health and wellness center,” said Mary Ann Tighe, CBRE leasing team leader.
She added, “The great thing about 200 Park Avenue is its size. More than 8,000 people travel to work here every day. It’s a key component of the Grand Central transportation hub.”
Tai added that 200 Park’s future will include a “focus on sustainability, which is very important to Irvine and to CBRE.”
The transition to CBRE was a natural one following Tishman Speyer’s departure, the people said. CBRE and its predecessor companies, Insignia/ESG and Edward S. Gordon Co., have called 200 Park home for 37 years.
“We are excited to work with The Irvine Company to create a new chapter in this building’s incredible history,” said Matt Van Buren, president of CBRE Tri-State Advisory Services.
CBRE manages $144 billion worth of commercial assets worldwide.
Asset management is a crucial role that involves long-term and day-to-day monitoring of a property’s cash flow, capital structure and liabilities.
