Published reports this past October said Avon and other prospective tenants were eyeing the 485,000 square feet of space vacated by anchor tenant Grey Global in its move to 200 Fifth Ave. Last March, Jones Lang LaSalle was hired by Kaufman to market the 777 Third space; the Avon deal for 10 floors accounts for slightly more than half of it.
Robert Kaufman, principal of William Kaufman, says in a release that the Avon deal at the family-owned office tower gets 2010 off to a great start. "Our leasing of this space in such close proximity to the time period from which the space became vacant is an unusual occurrence in the current economy, and a true testament to the quality of the building," he says. It's the biggest relocation in Manhattan since Gap Inc. announced it would move to 40 Worth St. late last summer.
In a release from CB Richard Ellis, which co-brokered the deal with Cushman & Wakefield, Avon Products SVP Geralyn Breig says the lease affords her company "a significant moment in today's market to reduce occupancy costs, while at the same time enabling us to create more contemporary, collaborative and efficiently-designed office space for our associates." Breig, who is also president of Avon North America, adds that signage and branding opportunities "to showcase Avon's image" are also part of the mix.
COO Charles McClafferty, COO of Sage Realty Corp., William Kaufman's leasing arm, says in the William Kaufman release that attention is now focused on renting tower space at 777 Third, although negotiations with "a number of tenants" are under way. Terms of the Avon deal were not disclosed; the New York Post, which reported the deal earlier, says rents start in the $40s per square foot and escalate into the low $50s over the duration of the lease.
Brokers on the deal included Michael Lenchner, VP and director of leasing of Sage Realty, along with JLL's Peter Riguardi and Frank Doyle, all for 777 Third; and CBRE's Jon Zuckerman and Leonard DiMicelli representing Avon with C&W's Dale Schlather. William Kaufman built 777 Third in 1963; it's currently undergoing a multimillion-dollar renovation.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
