SL Green, Vornado Ink Lease Expansion in Midtown Manhattan

280 Park Ave. came online in 1962 and underwent renovations in 2015. Image courtesy of CommercialEdge

PJT Partners has renewed and expanded its lease at 280 Park Ave. in Midtown Manhattan, the New York Post reported. The investment bank signed a 15-year renewal and expansion, bringing its total commitment to 270,000 square feet on six floors. SL Green Realty Corp. and Vornado Realty Trust are the owners of the 1.3 million-square-foot tower.

In addition to its initial 140,000-square-foot footprint, PJT converted an 80,000-square-foot sublease to a 130,000-square-foot direct lease. CBRE and JLL were involved in the lease negotiations.

According to CommercialEdge data, in 2011 SL Green Realty acquired a 49.5 percent ownership stake in the property for $500 million from InvestCorp. The office building became subject to a $1.1 billion CMBS loan in 2017, originated by Deutsche Bank.

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The 43-story tower came online in 1962 and is LEED certified. The partnership embarked on a $150 million full-property redevelopment and modernization that was completed in 2015. Plans called for a lobby expansion, infrastructure upgrades and the redesign of a plaza that is adjacent to the building.

The tower includes 4,495 square feet of retail space and features floorplates ranging between 8,691 and 49,823 square feet, 17 elevators and controlled access. Amenities include a fitness center, bike room, messenger center and the Fasano Restaurant located on the 48th and 49th streets sides of the West Building. The roster also comprises Wells Fargo, Capital Four, Cohen & Steers, Fiduciary Trust International and Torchlight Investors, among others.

CBRE CEO Mary Ann Tighe, Vice Chairman Ken Meyerson, Senior Vice Presidents Brendan Herlihy and Eric Thomas, First Vice President Marlee Teplitzky, alongside JLL’s Vice Chairman Evan Margolin represented the tenant. The ownership was assisted by Vornado’s Executive Vice President Glen Weiss, Executive Vice President Steven Durels with SL Green, together with the CBRE Vice Chairman Peter Turchin, Executive Vice President Greg Rothkin and Senior Vice President Jason Pollen.

SL Green’s latest moves in Manhattan

The news comes on the heels of CBRE assisting Stonepeak Partners in signing a 77,000-square-foot lease at 245 Park Ave., another Manhattan building owned by SL Green. The investment firm committed to the 31st and 32nd floors of the property for 15 years.

Previously, Howden Tiger renewed and expanded its commitment at 1250 Avenue of the Americas with landlord SL Green, signing a 31,916-square-foot, 10-year lease. The owner closed another deal at 450 Park Ave. with British-American hedge fund BlueCrest Capital Management, which committed to 21,640 square feet.

Additionally, this month SL Green agreed to sell the fee ownership interest in 625 Madison Ave., a 17-story office building in Midtown. The company and its partners are selling the property for $632.5 million to an undisclosed buyer.