David Sigman, SVP of LCOR, tells GlobeSt.com that the total project cost is "around $90 million, including tenant allowances, brokerage commission, interest, etc." He also notes that asking rents will range from $100 to $160 per sf once construction is completed.
The class A office building will be recreated from scratch to provide space to an upscale tenant roster, currently marketed to elite, boutique financial services companies and law firms. Located one block east of Central Park, the building offers tenants full-floor or multiple full-floor options ranging in size from 9,300 sf to 6,200 sf with a 900-sf penthouse, with building-wide amenities creating an environment comparable to that of a five-star hotel, LCOR says.
The new building, expected to gain a LEED Gold rating, will offer prime space to tenants desiring full-floor occupancy. "And as a green building, tenants can enjoy improved indoor air quality, which can boost employee productivity and reduce absenteeism," Sigman explained in GlobeSt.com's previous story about the conversion. "The increase in energy efficiency can reduce their costs further. The LEED certification will be a win for the building's tenants and for the earth as well."
The transformation is scheduled for completion in the middle of this year. "The investment community recognizes the value of a class A trophy office building in the center of Manhattan's most lucrative business district," Sigman says. "Given the strength of the local market and LCOR's complete renovation of the property, financing was readily available."
KeyBank also provided an $11-million letter of credit that secures the ground lease during construction. LCOR's joint venture partner is BlackRock Inc. In November 2006, LCOR leased the building for 75 years. After construction, which the demolition phase began in March, the building will be 140,000 sf. The first tenants are slated to be able to move in by spring 2008. Jones Lang LaSalle's Peter Riguardi, Frank Doyle, Lisa Kiell and David Kleiner will exclusively lease the office space; while CB Richard Ellis' Susan Kurland will handle the retail leases.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
