NEW YORK CITY-SJP Properties and law firm Proskaeur Rose made Monday’s reports official on Tuesday with a formal announcement of a 406,000-square-foot, 20-year lease at 11 Times Square, about 25,000 square feet larger than initially reported. The deal for 14 floors of the 1.1-million-square-foot tower, which is scheduled for completion next month, is the first one signed there and is believed to be the largest Midtown office relocation in more than two years.
“Proskauer is the type of world-class tenant we specifically targeted for this building, and we are extremely confident that the firm’s move to high-performance new construction will offer both immediate and long-term benefits,” SJP CEO Steven J. Pozycki says in a release. The 40-story property is aiming for LEED Gold certification.
Allan Fagin, Proskauer’s chairman, says in a release that the move from 1585 Broadway “provides a platform for our future in this city and beyond, as we continue to expand our practice areas, enhance our capabilities and extend our global footprint.” He adds that the building’s technology and sustainability features as well as its central location and access to mass transit all were major factors in the firm’s selection of 11 Times Square.
Stephen B. Siegel, chairman of global brokerage at CB Richard Ellis, represented SJP in the transaction. He says in a release that Proskauer’s move “is a significant validation of both SJP Properties’ strategy of developing this world-class building on speculation, and the flight of corporations to technologically superior, energy-efficient office environments.”
The law firm was represented by Siegel’s colleagues at CBRE, vice chairman Michael Geoghegan and EVP Stuart Eisenkraft. Davis & Gilbert served as legal counsel for SJP and Proskauer represented itself during the negotiations.
According to the New York Post, which reported in January that Proskauer and SJP had completed a term-sheet deal for the space, starting rents are said to be in the high $70s per square foot, slightly higher than the mid-$70s range stated earlier in both the Post and the New York Times. Rents will escalate every five years.
Proskauer says in a release that plans to move into the space in 2011. At that time, 11 Times Square will feature a 50-by-20-foot, backlit sign, reportedly making Proskauer the first law firm in the city to have its name prominently displayed at the top of its headquarters.
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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.
