Herzfeld & Rubin's new space will occupy a comparable footprint on one-and-a-half floors at 125 Broad than the seven-floor space it is vacating at 40 Wall. The law firm's management committee says, in a release, that although the decision to move from the tower it has occupied since the 1950s--initially as a single-floor tenant--was "a major one," the new location "will provide us with greater operational efficiencies."
Marc Shapses, executive managing director of Studley, who represented Herzfeld & Rubin, says in a release that he and colleagues Joseph Messina and Jason Schwartzenberg were waiting for "the right time to strike. We were hired in 2005 to find a more cost-effective, efficient occupancy solution for the firm, and periodically went out into the market looking for space. The market went through extraordinary price and availability changes in that period. The right situation with the right economics hadn't surfaced until now."
Schwartzenberg adds in a release that the Mack-Cali space hadn't come to market yet. "We knew it would soon be vacated, so we moved quickly to secure it," he says.
Terms of the deal were not disclosed. However, asking rents for comparable Broad Street properties are in the high $30s per square feet, compared to the $59 per square foot being asked for upper floors at 40 Wall. Additionally, Studley negotiated a work letter into the lease that will cover 100% of the modifications that Herzfeld & Rubin will need to make in the space, according to a release.
Mitchell Hersh, president and CEO of Edison, NJ-based Mack-Cali, says in a release that the location and amenities at 125 Broad "make it one of Downtown Manhattan's most prestigious business addresses." Hersh and VP of leasing Christopher DeLorenzo represented Mack-Cali in negotiations. Arthur Strauss and Harry Kritzer acted as in-house counsel for Herzfeld & Rubin, while Marc Ripp similarly provided in-house counsel for the landlord.
In 2007, Mack-Cali bought a 39.6% condominium interest in 125 Broad from S.L. Green Realty for $273 million in a deal that also saw S.L. Green pick up Mack-Cali's 500 West Putnam Ave. in Greenwich, CT for $56 million. The REIT's share of the 1.3-million-square-foot office tower totals 524,476 square feet and is 100% leased, according to Mack-Cali. Currently it is Mack-Cali's sole Manhattan property. The remainder of the building is owned by three tenants: law firm Sullivan & Cromwell LLP, which occupies a space of approximately 600,000 square feet; the American Civil Liberties Union; and Oppenheimer & Co.
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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.
