220 E. 42nd St.
NEW YORK CITY—The Young Adult Institute will be moving into SL Green Realty Corp.'s office tower at 220 E. 42nd St. The nonprofit which offers services for people with intellectual and developmental disabilities will occupy 75,353 square feet, the entire eighth and part of the seventh floor of the skyscraper, known as the “News Building.”
SL Green agreed to convey a 30-year leasehold condominium interest in the space. The leasing price was not disclosed. But a source with knowledge of the deal tells GlobeSt.com that asking rents are $65 to $85 per square foot, depending upon the floor location, and that YAI will move in during the second quarter of 2019.
With the transaction, the Midtown East building on East 42nd St. between Second and Third avenues is now over 96% leased. Originally built in 1930, the 37-story tower is also home to Omnicom, WPIX and the United Nations Development Program.
“YAI is an exceptional organization and we're delighted to welcome them to the News Building,” says Steven Durels, EVP, director of leasing and real property for SL Green.
YAI's current administrative offices are at 460 W. 34th St., between Ninth and Tenth avenues. Although there's buzz about Hudson Yards and the Penn-Farley transportation development, Midtown South has also experienced rent increases, with some of the highest leasing prices in the country.
“The net result of working closely with SL Green will be a custom-built and contemporary headquarters that enables our staff to work more efficiently and collegially than was possible at our current 34th Street location,” says George Contos, CEO of YAI. “Our new space, which includes a private entrance for our clinic, will ultimately yield improved outcomes for the entire YAI organization and the people we support.”
JLL's Matthew Astrachan, Joseph Messina, Simon Landmann and Zachary Azus represented the tenant, YAI. Tara Stacom, Barry Zeller, Justin Royce, Connor Daugstrup and Pierce Hance of Cushman & Wakefield represented the landlord.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
