Architectural rendering of One Vanderbilt Ave. currently under construction./ Courtesy of SL Green
NEW YORK CITY—KPS Capital Partners LP has signed a deal with SL Green Realty to lease 28,024 square feet, the entire 52nd floor at One Vanderbilt for 15 years. The global private equity firm is sticking to Midtown East, moving from its current location at 485 Lexington Ave. that's between E. 46th and E. 47th streets. A source with knowledge of the deal tells GlobeSt.com that asking rent in the KPS lease was $200 per square foot.
In addition, the international law firm McDermott Will & Emery has expanded its lease adding 14,276 square feet, and will occupy a total of 129,489 square feet on the 44th through 47th floors as well the entire 67th floor. The asking rent was in the $160s per square foot, as first reported by Commercial Observer.
With construction in the building expected to be completed by August 2020, both tenants are likely to move in during the first quarter of 2021, according to the source.
Construction has now reached 1,088 feet, the height of the planned observatory, with steel construction scheduled to top out in the second half of this year. Upon completion, the building will total 1.7-million-square feet, rising 77 stories and 1,401 feet high. In addition, SL Green had reached a deal with the city prior to the city council passing the Midtown East rezoning. Granted permission for its super tall height, SL Green agreed to invest $220 million in public transit.
The building is now 56.9% leased. KPS will join TD Securities, TD Bank, Greenberg Traurig, DZ and DVB Banks, MFA Financial Inc. and SL Green Realty Corp. as building tenants. In addition, Daniel Boulud plans to open a restaurant called Dinex on the ground floor with its main seating on the building's second level.
Cushman & Wakefield's Mark Weiss and Alan Wildes represented KPS. Newmark Knight Frank's Moshe Sukenik and Noel Flagg represented McDermott, Will & Emery. CBRE's Robert Alexander, Ryan Alexander, Emily Jones and Alex D'Amario represented the landlord in both leases.
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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.
