Blue Owl Signs 239K Manhattan Lease
The company is extending its lease to include another 70,076 square feet.
Blue Owl Capital will grow its presence even larger at its Manhattan office location at 375 Park Avenue.
The alternative investment asset management company has signed a lease with RFR Realty, which operates the Seagram Building, for a total of 238,673 square feet, according to a report from the Commercial Observer.
The deal includes an extension to the 168,597 SF it already operated, which includes the second through sixth floors. Plus, it will add another 70,076, with that portion under contract for the 16-19 floors. Blue Owl’s space at the property is almost at full occupancy.
The 38-story office tower’s floor sizes range from 15,700 to 39,100 square feet. Some notable features at the Seagram Building include floor-to-ceiling windows, a loading dock, 24/7 building access, parking, EV charging, and bike storage. Plus, there are some amenities including a playground, conference center, and restaurants.
Cushman & Wakefield brokered the deal for Blue Owl, while RFR received its own representation from AJ Cahmi and Paul Milunec.
“Seagram is an iconic New York City building with world-class amenities and a top-notch management and service team,” Andrew Polland, chief operating officer of Blue Owl, said in a statement.
“RFR has proved to be an excellent partner in supporting our continued growth, as exhibited by this recent, four-floor expansion, and we are excited to be the anchor Seagram tenant for many years to come.”
Originally, Blue Owl signed a lease in 2022 at the Seagram Building for 137,660 SF before expanding by another 31,597 SF a year later, according to the Commercial Observer.
The move by the New York-based firm follows its $170 million acquisition of Prima Capital Advisors, earlier this year. The deal allows it to launch a real estate financing strategy and delve into CMBS lending.
Meanwhile, office activity is continuing to improve in Manhattan. Net absorption in the city exploded to 5.7 million square feet in the three months ending September – the highest levels seen in a decade, according to a report from Transwestern. Plus, leases surged by 31 percent in the year-to-date through September, compared to the same period in 2023.