Fintech platform iCapital Network Inc. has agreed to expand its global headquarters at Empire State Realty Trust’s One Grand Central Place in Midtown Manhattan. The tenant will take up three contiguous full floors, adding six years to its initial 11-year term.
iCapital invoked recent growth and an expansion of its operations as the main reason for growing its Manhattan footprint by 35,186 square feet. The company will occupy a total of 64,537 square feet in the 55-story tower.
The lease expansion comes on the heels of iCapital’s announcement that it has entered into a definitive agreement to acquire Axio Financial, an end-to-end service provider for the U.S. structured notes market. The deal is expected to close by the end of this year.
A CBRE team comprising Lauren Crowley Corrinet, Al Golod and Christopher Hogan represented iCapital in the negotiations. Empire State Realty Trust’s Ryan Kass provided owner representation, alongside a Newmark team comprising Erik Harris, Neil Reuben, Scott Klau and William Cohen.
Empire State Realty Trust recently completed several enhancements at the 1.2 million-square-foot office tower at 60 E. 42nd St. The owner focused on adding wellness-oriented features relevant to the current health crisis, such as MERV 13 filters, active bi-polar ionization and increased ventilation.
In a prepared statement, ESRT Executive Vice President Thomas Durels said that a contiguous full floor was created for iCapital’s expansion by relocating several tenants to other suites in the building. Office tenants include Allianz, 3i, Johnson Controls, Yardi, Pine Brook Partners, Balfour Beatty, among many others.
Situated across the street from Grand Central Terminal, the building offers direct access to mass transit options. Other amenities include a tenant-only conference center, visitor center and access to a host of adjacent retailers.
Manhattan showing signs of recovery
Manhattan’s office vacancy remained lowest among gateway cities, CommercialEdge data shows. In August, the rate reached 10.8 percent, down 10 basis points month-over-month, and well below the national average of 15.4 percent.
Earlier this year, ESRT closed on a few other leases at its several Manhattan office properties. In April, retailer Burlington Stores agreed to double its footprint at 1400 Broadway. At One Grand Central Place, ESRT also signed on two leases totaling 50,000 square feet, occupied by Belkin Burden Goldman LLP and Dime Community Bank. The owner of the Empire State Building also closed on an $850 million credit facility in April this year.