The Gotham Organization is developing 1010 Ave. of the Americas, a 380,000-sf tower located on the southeast corner of 38th Street. The building's Schuman Lichtenstein Claman Efron design features retail space on the ground level and luxury residential units on floors five through 47.
Floors two, three and four, however, comprise 46,000 sf of office space that carries an asking rate of $42 per sf and optional naming rights to the building. Accessed by a separate lobby and two dedicated elevator banks, the office space is designed as a "building within a building," according to Gotham president David Picket. While the property's residential component will be known as the Atlas, the opportunity for a medium-size firm to hang signage on a major Midtown property is making this deal especially compelling for office tenants, Picket says.
"In the current market, naming rights serve as an incentive for many companies," says Picket. "It's attractive to tenants looking to brand their identity," he added. "We offer a significant and unique opportunity for a medium-sized firm to have its name on a building, a right that is usually only available to large office tenants."
According to Robert Murphy, managing director of D.G. Hart Associates, the exclusive leasing agent for the building, the naming rights and signage space are included in the asking rent. The cost of the signage would be absorbed by the tenant and Gotham would have right of approval. "This is for the tenant who wants people to drive by and see that it's theirs," Murphy tells GlobeSt.com. ""The space also allows for the opportunity for a firm to control its own security and traffic flow. This is an exceptional opportunity for a firm to secure premium raw space in a prime location," he adds.
The location of the property and the asking rent, which is roughly 20% less than Times Square rates, is another selling point. "This midtown south corridor, with easy access to Grand Central Station, Penn Station, the Port Authority and Times Square, is quickly maturing into a significant gray-flannel office district." Murphy adds that he is "negotiating on a couple of transactions" for the space, "but in this market, nothing's over till it's over." Interested tenants include a college, an accounting firm and a software company, Murphy says.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
