According to chairman Sheldon Bonovitz, the firm's space on Lexington Avenue features a floorplate of approximately 8,000 sf; however, the size is considerably less than is common in the firm's other offices. "We started with two lawyers in 1994 and have really outgrown the space," he tells GlobeSt.com. "In almost every other venue, our floorplate is about 25,000 to 30,000 sf. We wanted to have an environment where there was much more interaction among our lawyers than being on seven or eight different floors.
"We also wanted to be in a class A building that reflects where the firm is today and where it is going," he adds.
The deal at 1540 Broadway is for space on floors 11 through 14. Rental rates for those floors range between $50 to $54 pr sf. According to Bonovitz, the Duane Morris facilities team looked at about 18 locations in Midtown and selected six for Bonovitz and Robert Hasday, managing partner of the New York office, to tour. "1540 was by far the most attractive building that we saw," Bonovitz explains. "It really was an easy choice based on the locations that were shown to us. And we didn't put any constraints on rent or location in Midtown."
And he adds the firm is excited about the move. "If anything is necessary, it confirms our commitment to New York and building our New York office. I'm spending at least one day a week in New York and have an apartment in New York. We're really focusing our efforts on establishing a strong presence in the New York marketplace."
The law firm, which has more than 600 lawyers across the country, calls its Philadelphia office its headquarters; however, that can change, Bonovitz adds. "Philadelphia is our headquarters now because our management is here, but frankly over time, as New York grows, I wouldn't be surprised if New York becomes our headquarters," he tells GlobeSt.com.
Currently owned by the Paramount Group, the building's other tenants include BMG Entertainment Worldwide and Gruner + Jahr Int'l Marketing and Media Services. This is the second time in a week the 44-story, 1.1-million-sf property at 1540 Broadway has made news. As GlobeSt.com previously reported, Equity Office Properties is under agreement to purchase the office portion of the Times Square property. Vornado Realty Trust is set to take the retail, signage and parking portions for $260 million. All total, the deal is worth approximately $820 million.
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