Ronald H. Shechtman, managing partner at Pryor Cashman, tells GlobeSt.com his firm had "looked at multiple spaces and submitted multiple lease proposals" in the course of two years, and also considered renewing in place. "At the same time, we wanted to be ready should a unique opportunity arise." That opportunity arose when San Francisco-based firm Heller Ehrman--which closed its doors in September--left its New York offices in virtually move-in condition.
Shechtman credits CB Richard Ellis, which represented both Pryor Cashman and landlord Boston Properties, with "truly educating us about the market and helping us reach consensus." As a result, the deal came together in less than a month.
In a CBRE release, EVP Mark Ravesloot notes that Pryor Cashman is consolidating from its current space, "spread across three older, interconnected buildings." Those interconnected buildings are 400 and 410 Park Ave., which are joined, as well as in Herron Tower at 70 E. 55th St. Pryor Cashman has been at 410 Park since 1971.
The new space is approximately 10,000 square feet larger, allowing for future growth. Pryor Cashman had record profits in 2007 and is on track to do the same this year, according to a release from the law firm. Currently it employs more than 130 attorneys and 90-plus support staff.
Pryor Cashman will occupy all of floors 39 through 41, with additional space at the base of the 48-story building, also known as Times Square Tower. According to published reports, a 15% drop in asking rent to $85 per square foot helped propel the deal. Shechtman declines to comment on that figure, but tells GlobeSt.com, "New York shares the volatility of other markets."
Along with Ravesloot, the CBRE team representing Pryor Cashman included vice chairman Lewis Miller, SVP Jason Gorman and VP Mike Wellen. Boston Properties was represented by the CBRE team of chairman John Powers, EVP Peter Turchin and senior financial analyst Christie Harle.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
