SL Green's leasing trifecta at 1185 6th

Real Estate Weekly,  June 11, 2008  

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SL Green Realty Corp. announced that is has completed three separate, but linked, transactions.

The transactions include:

West LB (Westdeutsche Landesbank) Buyout: West LB surrendered the entire 7th floor at 1185 Avenue of the Americas covering 27,508 square feet, which had eight years of a remaining term at below market rent. The surrender included a buyout fee paid to the landlord.

RSM McGladry Expansion and Extension: RSM McGladry expanded into the space surrendered by West LB. Additionally, RSM extended its existing lease term within 1185 Avenue of the Americas by three years and eliminated an existing right to cancel in 2011 resulting in a total commitment of 164,771 square feet. Simultaneously RSM surrendered an existing lease covering 52,418 square feet at 750 Third Avenue, which had approximately five years of remaining term at below market rent.

Regent Business Centers New Lease: Regent Business Centers signed a new 10-year lease covering the 52,418 square feet surrendered by RSM McGladry at 750 Third Avenue.

"This series of transactions required delicate balance in negotiating the priorities and schedules of various unrelated parties," said Steven Durels, executive vice president and director of Leasing and Real Property for SL Green. "The result unlocked significant rental value and mitigates future lease expiration exposure."

RSM McGladrey is one of the nation's most prestigious accounting and tax services firms. 1185 Avenue of the Americas is a 42-story, 1.1-million-square-foot, Class-A tower located between 46th and 47th Streets.

Regent Business Centers is a leading provider of office solutions for businesses needing full service office suites. 750 Third Avenue is an 800,000 s/f, Class-A tower located three blocks from Grand Central Terminal.

RSM McGladry was represented by John Isaacs and Kevin Powderly of CBRE. Regent Business Centers and West LB were represented by Scott Klau of Newmark Knight Frank. The landlord was represented in-house by Howard Tenenbaum, Gary Rosen, and David Kaufman.

COPYRIGHT 2008 Hagedorn Publication
COPYRIGHT 2008 Gale, Cengage Learning