When does over 200,000 square feet of new office space opening in the middle of a tough market go unnoticed?
When they're inside an eye-catching, 1,000-foot-tall, mostly apartment skyscraper on Fifth Avenue.
Due for completion next year, the Lavina-led project at 520 Fifth Avenue is best known for offering 100 luxury condominiums. The KPF-designed tower on East 43d Street is hard to miss, with its striking two-story terra-cotta-framed arched windows.
But it will also provide 210,882 square feet of offices across 25 boutique-sized lower floors, from floors 9 to 34. The offices, which will range in size from 6,500 square feet to 12,000 square feet, are targeted at “occupants who want a sense of individual identity and arrival when they step out of the elevator,” said Benjamin Bass, executive managing director at JLL, which is leading the leasing campaign.
Despite well-known leasing market challenges, Bass is confident the new product will appeal to industrial tenants as well as smaller financial institutions that often want smaller storefronts. Proximity to Bryant Park and Grand Central Terminal are big draws, he said.
Additionally, most office floors will feature highly sought-after outdoor space in the form of a terrace or loggia, and tenants will have access to an extensive amenity centre, the details of which have yet to be disclosed.
“The supply of trophy space in Midtown is dwindling,” Bass said. “It's creating a tightening effect. We're well-positioned to take advantage of this situation.”
Lavina took over the long-stalled project from Ceruzzi Properties and SMI USA in 2019 and closed on a $540 million construction loan package in early 2022.
