A source close to the deal tells GlobeSt.com that the law firm did pay a slight increment earlier than it needed to, but essentially locked in a good rate for the long-term. The firm was advised that it was more financially prudent to restructure and extend now. The source was not at liberty to discuss financials including the aggregate lease value at this time.
The landlord, Silverstein Properties, was represented in-house by Roger Silverstein. Asking rents in the building are $40 to $45 per sf.
"Few tenants realize that in even tight markets like the one we're experiencing in New York City, the most financially prudent real estate strategy is to look at their long-term needs," notes Studley's Marc Shapses, executive managing director, who with a team that included Jason Schwartzenberg, managing director; David Providenti, corporate managing director; and project manager Frank Edwards, corporate managing director, represented the law firm. "It also makes sense for firms to continually evaluate their occupancy scenario even if it is years before their leases expire."
"In the case of Lester Schwab Katz & Dwyer, a long-term client, the stay-put scenario at 120 Broadway, where the firm has been located for 27 years, provided the law firm with competitive rental rate for another 12 years, while eliminating the costly expense of moving to and building out new offices--two costs that have skyrocketed over the last couple of years," Shapses adds, noting that his team also secured a work letter for capital improvements to the space.
"Marc helped us evaluate the stay-put option versus moving and remaining at 120 Broadway was clearly the most fiscally beneficial for the firm," notes Mike McDonagh, the law firm's managing partner in a prepared statement, adding that the firm has enjoyed being in the building since 1990. "The willingness of Silverstein Properties to keep us in the building with a competitive agreement that includes money to improve our space, speaks to the professionalism of the landlord and the value they place on retaining quality tenants in their buildings."
Silverstein Properties recently completed a $60-million renovation program for the structure. Current tenants of 120 Broadway, also known as the Equitable Building, include the Attorney General of the State of New York; Alliance for Downtown New York; Spear Leeds & Kellogg; Emmet, Marvin and Martin; and the Securities Industry and Financial Markets Association.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
