The recent signing of a lease for another major law firm on Midtown's Sixth Avenue is good news for Vornado Realty Trust and a rare ray of hope for the beleaguered Trump Organization. be.
The national law firm King & Spalding, which has been a tenant at 1185 Sixth Avenue in SL Green on West 47th Street for 20 years, will move six blocks north to 1290 Sixth Avenue, Realty Check has learned. Ta.
Vornado is the majority owner and operator of the 2.1 million square foot tower. Trump owns a 30% stake in Passive under a complex 2007 deal with Vornado CEO Stephen Ross that also includes an office building in San Francisco.
Officials reported the 175,000-square-foot King & Spalding lease, with Paul and Weiss signing a major deal to move and expand into 765,000 square feet at Fisher Brothers 1345 Six, adding 550,000 square feet to RXR. This comes on the heels of last week's Sixth Avenue news about leaving ft. 1285 6th of Real Estate.
King & Spalding has been at 1185 Sixth for about 20 years. The move to 1290 in 2025 will be a small expansion from the company's 169,000 square feet at 1185 (it originally had 236,000 square feet there, but sublet some of it a few years ago). Ta).
SL Green declined to comment on the departure.
Vornado, who dislikes media coverage, would not confirm or comment on the new contract. However, it turns out that the law firm plans to occupy floors 13 to 15 of 1290 Sixth. The asking rent there was $105 per square foot.
The tower features upgrades including a renovated lobby, triple-height glass curtain wall, infrastructure upgrades, and “wellness” amenities.
The lease leaves only approximately 200,000 square feet of space available at 1290 Street. Neuburger Berman is his largest tenant with 400,000 square feet.
The legal lease agreement for Sixth Avenue at the end of 2023 has given the commercial market a boost after a mostly miserable year.
CBRE's Howard Fiddle, a member of Mr. Fisher's leasing team, said of the vibrant Sixth Avenue corridor, which is also home to the New York Post's parent company News Corp. and sister company Fox, “Law firms love this area. ” he said.
We predicted Paul Weiss would be heading to 1345 several months ago, but we underestimated the size of the lease, which would be a significant expansion for the company. Fiddle said the deal also includes options for future expansion.
“The timing worked out well,” Fiddle said, as Alliance Bernstein's lease on 1345 was expiring. He said Paul and Weiss would gain control of the space in 2025 and move in by 2027.
He said the law firm's decision was due in part to the tower's recently completed $120 million capital upgrade, which included a redesigned lobby and outdoor public plaza, amenity floor, tenant lounge and wellness center. Thought.
Brad S. Karp, chairman of Paul Weiss, also cited the tower's “high-tech features, thoughtful meeting spaces, and artistic elements” in a statement.
“This is 100% a flight to quality,” Fiddle said, proving that “buildings don't have to be brand new” to attract top-notch tenants. Mr. Fisher owns 1345 Sixth at JPMorgan.
RXR Realty Chairman and CEO Scott Reckler said of Paul Weiss' impending departure, “Unfortunately, ultimately 1285 did not have the space to accommodate our expansion needs.” Ta.
“When Paul and Weiss leave, they'll have been tenants for 40 years. That's a testament to the quality of our relationship and the quality of the building,” Rechler said.
“We have already distributed term sheets for the majority of the spaces,” he said.
Rechler called Paul Weiss' expansion plan “another bright spot for Midtown's well-located Class A office building market.”
Meanwhile, the Trump Organization is under pressure on a number of fronts. The $160 million loan for 40 Wall Street, the most valuable commercial property, is in special administration as the judge in former President Donald Trump's fraud trial seeks to strip him of his entire New York fortune.
