RFR Inks Lease in Midtown Manhattan

Seagram Building. Image courtesy of RFR Realty

Sovereign wealth fund Temasek International has signed a 26,062-square-foot lease renewal and expansion at RFR Realty’s Seagram Building in Midtown Manhattan, an 891,998-square-foot office property. Newmark brokered the agreement on behalf of the tenant, while JLL, along with a RFR in-house team, represented the landlord.

Temasek, which has been a tenant at Seagram since 2013, will be relocating to a bigger space within the building as part of a new long-term agreement. The firm’s newly signed lease brought the Seagram Building to 95 percent occupancy. According to RFR, more deals are in progress, which should result in the property achieving complete occupancy by the end of the year.

Blue Owl, Arbor, Crestline Investors, Centerbridge Partners, Berkley Insurance and Sound Point Capital are among the tenants at the 38-story property, according to CommercialEdge. On-site parking, a recently completed 35,000-square-foot playground, a conference center, as well as restaurants The Grill and The Lobster Club are among the amenities at the property.

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Completed in 1958, the Seagram Building underwent cosmetic renovations in 2013. Located at 375 Park Ave., the property was designed by Ludwig Mies van der Rohe, in collaboration with Philip Johnson.

RFR picked up the asset back in 2001, for $371 million, CommercialEdge reveals. As per the same source, the property is subject to a U.S Bank loan set to mature this year, in summer. Earlier this month, Commercial Observer disclosed that RFR is facing pressure to refinance the Seagram Building, as the maturity date for its $1 billion debt package approaches.

Newmark Vice Chairman Brian Goldman, Chairman Neil Goldmacher and Managing Director Matthew Lorberbaum brokered the lease signing on behalf of Temasek. The landlord was represented by JLL Chairman & President Peter Riguardi, Executive Managing Director Ben Bass and Vice Chairmen Paul Glickman and Cynthia Wasserberger, along with Executive Vice President AJ Camhi and Senior Vice President Paul Milunec of the in-house RFR Realty team.

High vacancy rates don’t slow down leasing activity in Manhattan

As of January 2023, Manhattan recorded the fastest surge in vacancy rates among Northeast markets, up by 2.6 percent year-over-year and hitting 15.4 percent. Nevertheless, notable leasing activity has continued in the borough as of late.

Non-profit Building Service 32BJ Health Fund signed a 18,850-square-foot lease at Kaufman Organization’s Cluett Building in Midtown Manhattan. Law firm Polsinelli has also extended and expanded its lease at L&L Holding Co.’s 600 Third Ave. in Midtown East.

Also last month, Clothing designer and retailer ESPRIT signed a 38,000-square-foot lease for its new Manhattan global headquarters at 10 Hudson Square. More recently, JEMB Realty Corp. signed three leases totaling 32,000 square feet at 75 Broad St.