Park Avenue landlords are tooting their horns after we reported last week that Sixth Avenue regained a narrow edge over Park in terms of the least percentage of available space.
The Stahl Organization’s 277 Park Ave. between East 47th and 48th streets boasts of nailing down an unreported 175,000 square feet of new and expansion leases in the past six months — bringing the 1.85 million square-foot tower to 98% leased.
The largest transactions were a 50,000 square-foot new lease for Sumitomo Corporation of the Americas; a 50,000 square-foot expansion by Sumitomo Mitsui Banking Corporation on top of its existing 266,000 square feet; and 47,000 square feet for Arsenal Capital Management.
Other, smaller new leases were signed by ERM Engineering & Consulting, Ontario Teachers Pension Plan and an unidentified international bank.
Cushman & Wakefield’s Mark P. Boisi, Bryan Boisi and Stephen Bellwood represented Stahl in all the transactions. They reflect Park Avenue’s sustained surge in a wildly uneven office market.
While both Park and Sixth avenue’s new and mid-20th Century towers have relatively low availability of around 11%, Manhattan’s overall rate is 20% — and it’s as high as 30% in parts of town including the Wall Street area.
Stahl’s success at 277 Park has much to do with the $120 million it spent to “reposition” the 1964-vintage property that was originally home to Chemical Bank.
Major upgrades include a new Park Avenue lobby with a 30-foot ceiling, a redesigned Lexington side lobby, a tenants’ fitness center on the ground floor and restaurants from popular chef David Burke. “It’s the whole magilla that tenants expect,” Boisi said.
Asking rents at 277 Park range between $100 and $120 per square foot. JP Morgan Chase is the largest current tenant.
