“While the majority of the legal industry is downsizing, HSG stands as a rare example of growth,” Lemle says. “Many law firms are consolidating their real estate footprints to smaller, more efficient layouts in an effort to reduce costs, and this particular consolidation presented an incredible opportunity for HSG.”

Zamia adds, “HSG wanted built, fully furnished law firm space in Midtown for its rapidly growing practice. By starting the search early, we were able to find a space that checked all the boxes and will allow HSG to grow into a premier office building at an attractive rent.”

425 Lexington Ave. is 100% leased by Canadian Imperial Bank of Commerce and Simpson Thacher, which both originally signed their respective leases when the building was developed in 1987. The sublease space from Simpson Thacher is the only space to become available in the building since the property was built in 1987. JP Morgan Asset Management acquired the 31-story office building in 2013 from Hines US Core Office Fund for a reported purchase price of $700 million. Hines continues to manage the building.

Canadian Imperial Bank of Commerce Simpson Thacher

NEW YORK CITY—Law firm Holwell Shuster & Goldberg LLP is nearly doubling its New York City office presence and will relocate to nearly 60,000 square feet of subleased space at 425 Lexington Ave.

Savillis Studley, which represented Holwell Shuster & Goldberg, reports the law firm signed a sublease totaling 59,750 square feet with Simpson Thacher & Bartlett LLP for a 16-year term in an off-market transaction. HSG will relocate from 750 Seventh Ave. at the end of the year and will nearly double its current subleased offices of 30,000 square feet, which it has occupied for two years. The law firm will occupy the 12th, 13th and 14th floors of the 750,000-square-foot 425 Lexington Ave. office building once taking occupancy.

HSG is a litigation boutique law firm that specializes in complex commercial cases, with a focus on sophisticated financial, securities, antitrust, intellectual property and bankruptcy-related cases. The firm was founded in 2012 by former U.S. District Court Judge Richard J. Holwell and his former partners and colleagues from White & Case—Michael S. Shuster, Daniel P. Goldberg and Dorit Ungar Black.

HSG initiated its search for new larger offices in the fourth quarter of 2016, two years prior to its current sublease expiration date, according to Savills Studley's L. Craig Lemle and Nick Zarnin, who represent the law firm. The brokers say they recognized early on that HSG should to take advantage of the tremendous amount of consolidation occurring within the legal sector. At the beginning of the search, Lemle and Zarnin found out that Simpson Thacher would make a few practice floors available for long-term sublease at 425 Lexington Ave. Eventually the law firm secured what the brokers describe as favorable rent with a substantial concession package.

“While the majority of the legal industry is downsizing, HSG stands as a rare example of growth,” Lemle says. “Many law firms are consolidating their real estate footprints to smaller, more efficient layouts in an effort to reduce costs, and this particular consolidation presented an incredible opportunity for HSG.”

Zamia adds, “HSG wanted built, fully furnished law firm space in Midtown for its rapidly growing practice. By starting the search early, we were able to find a space that checked all the boxes and will allow HSG to grow into a premier office building at an attractive rent.”

425 Lexington Ave. is 100% leased by Canadian Imperial Bank of Commerce and Simpson Thacher, which both originally signed their respective leases when the building was developed in 1987. The sublease space from Simpson Thacher is the only space to become available in the building since the property was built in 1987. JP Morgan Asset Management acquired the 31-story office building in 2013 from Hines US Core Office Fund for a reported purchase price of $700 million. Hines continues to manage the building.