550 Madison Ave. Picture courtesy of CommercialEdge
Olayan Group has signed a 144,000-square-foot lease settlement with personal funding advisory agency Clayton Dubilier & Rice at 550 Madison Ave. in Midtown Manhattan.
Fried Frank Companions Robert Sorin and Valerie Kelly, together with Particular Counsel Danielle Frank, brokered the settlement on the possession’s behalf.
The 852,796-square-foot property was accomplished in 1983 and purchased by Olayan again in 2016 for $1.4 billion, in a transaction backed by a $570 million mortgage, the identical knowledge supplier reveals.
READ ALSO: Leasing Exercise Animates Sluggish Manhattan Workplace Market
Clayton signed a lease for greater than 10 years to relocate from its present 70,000-square-foot workplace house on the Seagram Constructing, CommercialObserver reported. The corporate will occupy the 18th by twenty second flooring, in addition to the twenty sixth flooring, leading to a doubling of its present New York Metropolis footprint.
In accordance with the identical supply, The Olayan Group has not too long ago invested $300 million within the renovation of its 550 Madison Ave. workplace constructing. The revamps included upgrading the retail areas, facade and public backyard.
The renovated property now options 14-foot ceiling heights and column-free floorplates, meals and beverage choices, shared convention rooms, in addition to health and wellness amenities, as beforehand reported by Business Property Government.
Manhattan’s excessive rental charges
Clayton Dubilier & Rice can be relocating its headquarters to the 41-story workplace constructing, becoming a member of the prevailing tenant roster comprising landlord Olayan Group, Corsair Capital and Sarock Music Productions, in response to CommercialEdge. Final yr, the proprietor additionally signed a 71,757-square-foot lease with French luxurious design home Hermès.
In accordance with the most recent CommercialEdge report, the house Clayton Dubilier & Rice leased was the highest-priced itemizing within the borough as of Could, at $210 per sq. foot.
The report additionally signifies that Manhattan maintained its place as the most costly rental workplace market, ending final month with a mean asking charge of $73.57 per sq. foot. Moreover, the workplace emptiness charge within the space remained near the nationwide common of 17 %.
