SL Green Inks 347 KSF Lease at Manhattan Tower
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This is the second deal exceeding 300,000 square feet at the upcoming high-rise.
Franklin Templeton has signed a 347,474-square-foot, 15-year lease at One Madison Avenue, SL Green Realty Corp.‘s office development at 1 Madison Ave., in Manhattan’s Madison Square district.
Franklin Templeton will occupy floors 11th through 22nd. Cushman & Wakefield represented the tenant, while JLL worked on behalf of the landlord. The building is expected to be completed in November 2023.
The original portion of One Madison Avenue was constructed in 1909. After the redevelopment, financed through a $1 billion loan provided by Wells Fargo, One Madison Avenue will host a total of 1.2 million square feet of Class A office space, CommercialEdge data shows. Currently, the tower is 55 percent leased.
The revamp will add 500,000 square feet to what will be a LEED-certified high-rise. The building’s new features will include a new HVAC system, floor-to-ceiling windows and multiple terraces. Additionally, the amenities list features a mix of dining and retail options totaling 40,000 square feet.
Franklin Templeton is the building’s largest lease to date, joining IBM’s 328,000-square-foot agreement and Chelsea Piers Fitness’ 56,000 square feet. SL Green Chairman & CEO Marc Holliday said in prepared remarks that the IBM and Franklin Templeton deals are Manhattan’s second and third most significant leases this year.
The Cushman & Wakefield team included Chairman John Cushman and Executive Managing Director Jeff Cushman, Executive Vice Chair Robert Lowe, Vice Chair Peyton Horn and Managing Director Paige Engeldrum. The JLL team was comprised of Vice Chairman Paul Glickman, Senior Vice President Diana Biasotti, Vice Chairman Alexander Chudnoff and Managing Director Benjamin Brass.
“A masterfully redeveloped tower, and one of the newest office spaces in the city, it solidifies Midtown South’s position as a distinctive hub for creative work and play and we anticipate continued interest from corporate leaders eager to locate here,” Glickman told Commercial Property Executive.
Manhattan office market marches on
Manhattan remains the nation’s most expensive and expansionary market, seeing a year-to-date sales price of $901 per square foot and a year-to-date sales volume of $3.2 billion, according to a CommercialEdge report published this month. Construction shows no sign of slowing down either, as the borough remains the nation’s most active office development market, with 19.5 million square feet underway, the same source shows.
SL Green’s leasing deal follows its recent sale of 414,317 square feet of office space to Memorial Sloan Kettering Cancer Center in Midtown’s Lipstick Building, in addition to its acquisition of 450 Park Ave.