"We are pleased to welcome Arch," says Mitchell Hersh, president and CEO of the Edison, NJ-based Mack-Cali, in a statement. "Harborside continues to be an attractive office location for leading businesses due to its amenities, transportation access and significant financial benefits."
Arch was represented by Mark Ravesloot, Paul Jacobs, Colin Reilly, Scott Sloves, David Opper and Michael Monahan of CB Richard Ellis, while Mack-Cali was represented in-house. The lease runs for 15 years, but further terms were not released. The space had been listed with an asking rate as "negotiable," and comparable space in the market generally commands $35 to $40 per sf.
For Arch, the signing completes a multi-phase deal orchestrated by CBRE, which represents the specialty insurer nationally. "In a cost-savings move, Arch has consolidated its space, keeping its headquarters in Manhattan and moving its operations groups to Jersey City," a CBRE spokesman tells GlobeSt.com.
As part of that consolidation, Arch has subleased 30,000 sf at 245 Park Ave. in Manhattan to investment bank Moelis & Co. for three years, and will locate its employees there to 1 Liberty Plaza in Downtown Manhattan. At the latter building, where Arch has been occupying three floors totaling 137,000 sf, the company has given 89,000 sf back to landlord Brookfield Properties as sublease space, while keeping the 53rd floor for its headquarters.
That 89,000 sf, meanwhile, has been picked up by the law firm of Cleary Gottlieb Steen & Hamilton as part of a renewal, for 20 years, and an expansion, adding to its existing 547,000 sf at 1 Liberty. Finally, Arch is relocating a total of 300 operations employees from 1 Liberty to the new space at Harborside Plaza 3.
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