New York Post
"This lease raises office occupancy at the building to over 81%," says Steven Durels, EVP and director of leasing and real property for SL Green, in a release. "It's a tremendous accomplishment given that the building was scheduled to be 100% vacant only five months ago."
According to the Post, SL Green structured the lease to help the MTA benefit from a state law that exempts governmental agencies from real estate taxes under certain circumstances. "We created the building into two condo units," Durels told the Post. "The one dedicated to the MTA has its own tax lot, and it will save them about $5.50 a foot on annual real estate taxes," approximately $6.2 million over the course of the lease.
The 349,000-square-foot property is located between Eighth and Ninth avenues, near by Penn Station. The Segal Co. recently moved into 156,000 square feet of office space on floors two through five.
Josh Kuriloff and Rob Lowe of Cushman & Wakefield represented the MTA, while SL Green was represented in-house by Durels along with C&W's Paul Glickman, Tara Stacom, Mitti Liebersohn, Doug Dolgoff and Diana Biasotti. Asking rents for the space are $42 per square foot.
Last month, SL Green completed a $4.5-million lobby and storefront redevelopment at 333 W. 34th. It acquired the 10-story property for $184 million in 2007. The renovation includes the creation of a 21,000-square-foot retail space on the ground floor. "Our goal was to radically change one's first impression of the building, and to elevate its profile along the 34th Street corridor," says EVP Edward Piccinich in a release.
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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.
