Amazon Signs Major Lease Deal in New York City
Real Estate In-Depth | December 2019
NEW YORK—While the transaction pales in comparison to the failed Amazon HQ2 deal that was slated for Long Island City, Queens, the e-commerce giant did ink a major lease earlier this month in Manhattan.
SL Green Realty Corp. reported on Dec. 9 Amazon had signed a new 335,408-square-foot lease at 410 Tenth Ave., previously known as 460 West 34th St.
The Newmark Knight Frank team that represented SL Green Realty in the Amazon transaction was Brian Waterman, Scott Klau, Brent Ozarowski and Erik Harris. Derek Trulson, Bill Peters and Josh Stuart of JLL represented Amazon in the transaction.
In May, SL Green acquired a majority and controlling interest in the building located along the full block front of Tenth Avenue, between 33rd and 34th streets, at the intersection of Manhattan West and Hudson Yards. In April, First Republic Bank, a leading private bank and wealth management company, signed a new 211,521-square-foot lease there.
“We’re excited to welcome Amazon to 410 Tenth Avenue. We’ve had an excellent long-term relationship with Amazon and are delighted to expand it with their commitment to this very special building,” said Steven Durels, executive vice president and director of leasing and real property at SL Green. “The selection of 410 Tenth Avenue by Amazon and First Republic Bank is a great endorsement of our exciting redevelopment plan for the building which is now 96.2% leased only seven months after acquisition.”
SL Green is currently executing a comprehensive, building-wide redevelopment of the 20-story, 638,000 square foot, future Class-A office building. 410 Tenth Avenue was once known as the Master Printers Building and the building’s redesign will honor its industrial heritage.
The redevelopment will include relocation of the building’s lobby entrance from the 34th Street side of the building to 33rd Street, construction of a new glass box lobby together with new 9-foot-high industrial style windows, new elevators, double height storefronts and façade re-coloring.
An additional highlight will be the new 5,000-square-foot roof deck along with a 3,000-square-foot tenant lounge. The building enjoys numerous, large terraces for tenant use. Office floors have 13.5-foot slab heights with mushroom-capped columns.
SL Green also announced a number of other significant transactions at its properties that included:
• Strategic Family, Inc. signed a new 10-year lease covering 82,557 square feet on the entire sixth and seventh floors at 711 Third Ave. The tenant was represented by David Sturner, Jessica Tenenbaum and Joseph Friedman at MHP Real Estate Services.
• Greenberg Traurig LLP signed a 15-year lease covering 46,744 square feet at 420 Lexington Ave. The lease includes a 9,848-square-foot renewal on the fifth floor together with expansion space of 36,896 square feet on a portion of the 19th floor covering 35% of SL Green’s existing corporate headquarters space.
• ITV US Holdings signed a new 10-year lease covering 31,971 square feet on the entire 15th floor at 100 Park Ave. The tenant
was represented by Greg Taubin and Nick Farmakis of Savills. The landlord was represented by Tara Stacom, Barry Zeller, Justin Royce, Pierce Hance and Connor Daugstrup of Cushman & Wakefield.
• Wilk Auslander LLP signed a new 10-year lease covering 24,396 square feet on a portion of the 29th floor at 825 Eighth Ave., also known as Worldwide Plaza. The tenant was represented by Tim Dempsey and David Maurer-Hollaender at CBRE.
• Cardinia Real Estate LLC, a wholly owned subsidiary of Omnicom, signed a new 10-year lease covering 20,310 square feet on the entire 31st floor at 280 Park Ave. The tenant was represented by Lee Feld of Feld Real Estate and Stephen Siegel of CBRE. The landlord was represented by Mary Ann Tighe, Peter Turchin, Gregg Rothkin and Jason Pollen of CBRE
• McDermott Will & Emery LLP signed its second 20-year expansion lease at One Vanderbilt Ave. covering 15,860 square feet on a portion of the 44th floor. The expansion increases McDermott’s total commitment at One Vanderbilt to 146,642 square feet. The tenant was represented by Moshe Sukenik and Noel Flagg at Newmark Knight Frank.
• Goldberg Segalla, LLP signed a new seven-year lease covering 10,442 square feet on a portion of the 15th floor at 711 Third Ave. The tenant was represented by Kyle Cimenelli at Newmark.
SL Green reported it had signed 1.2 million square feet of commercial leases during the fourth quarter of 2019 and 2.3 million square feet of office leases year-to-date.
As of Sept. 30, SL Green held interests in 93 Manhattan buildings totaling 45 million square feet. This included ownership interests in 27.2 million square feet of Manhattan buildings and 17.8 million square feet securing debt and preferred equity investments. In addition, SL Green held ownership interests in seven suburban properties comprised of 15 buildings totaling 2.3 million square feet in Brooklyn, Westchester County and Connecticut.