The cheerful sounds heard at 711 Fifth Avenue last week were coming not from the posh Core Club on the tower’s top four floors, but from Accor’s new offices on the seventh floor.
The French hospitality company signed an unreported 23,000-square-foot lease in December and was celebrating its move into the space, sources told Realty Check.
Asking rent was $120 per square foot, according to sources, and the deal brings 711 Fifth’s 350,000 square feet to 90% leased. It’s the latest feat for developer Michael Shubo and his partners, who bought the former Coca-Cola building for more than $900 million in 2019, when it was 74% leased, according to market sources. A soon-to-be-signed deal with an unidentified tenant is expected to get the building completely full.
Shvo’s company (abbreviated as SHVO) specializes in acquiring architecturally distinctive properties and investing heavily in their restoration and renovation.
The company has found great success during the pandemic, leasing 60,000 square feet of space at 711 Fifth for its relocated and private Core Club, a gleaming, four-story complex that includes a dining room, bar, screening room and fitness facilities, which Realty Check was lucky enough to visit with friends recently.
Office tenants include Loro Piana and Allen & Co., while retail tenants include Polo Bar, Omega and Mango. Rents have doubled since Shubo’s acquisition, with spaces being offered at $205 per square foot, according to sources.
Once known as a high-profile residential broker, Shubo has transitioned into commercial life with the purchase of 711 Fifth.
According to the firm’s website, his portfolio includes ownership interests or shares in the Crown Building and 125 Greenwich Avenue in Manhattan, the Transamerica Pyramid Center in San Francisco, and prime real estate in Chicago and Miami Beach.
Shubo declined to comment.
