The Feil Organization Inks Office Renewal in Manhattan

April 17, 2024

Office Brokerage New York NewsMoreNortheast

An architecture company committed to 10 more years at The Gramercy Park Building.

The Feil Organization has signed a 10-year renewal for 12,617 square feet at The Gramercy Park Building, a 226,000-square-foot office property in Manhattan’s Flatiron District.

The tenant is PEI Architects, which will continue to use the building’s entire 19th floor. ABS Real Estate and Helmsley Spear negotiated on the firm’s behalf, while the landlord was represented in-house.

Completed in 1913, the Gramercy Park Building became part of The Feil Organization’s portfolio in 1982. The Art Deco property was most recently renovated in 2011 and became subject to a $50 million loan originated by J.P. Morgan Chase in 2015, according to CommercialEdge data.

The 20-story Gramercy Park Building, also known as 257 Park Ave. S., includes six passenger elevators, 12,954-square-foot floorplates and 10,350 square feet of first-floor retail space. Additionally, the office property features a common-area lobby with a restored sculpted ceiling, recently upgraded entrances and a concierge desk. Notable tenants include Gresham Investment Management, Madison Logic, Applied Information Sciences Inc., OpenSlate and Environmental Defense Fund, according to CommercialEdge.

Gramercy Park Building is close to Madison Square Park, as well as to multiple bus and subway stations. It is some 5 miles from the Financial District, 9 miles from Upper Manhattan and within 12 miles of LaGuardia Airport.

Helmsley Spear Senior Managing Director Peter Goldich, together with ABS Partners Real Estate Managing Director William Carr, represented PEI Architects in the transaction. The landlord was represented in-house by Feil Head of Commercial Office Leasing Andrew Wiener and Director of Leasing Robert Fisher.

Manhattan’s office leasing activity so far

As of February, Manhattan’s office vacancy rate clocked in at 16.8 percent, marking an 80-basis-point increase over last 12 months, a recent CommercialEdge report shows. The metro’s average asking rate reached $71.5 per square foot, dropping by 4.6 percent year-over-year. However, the borough remained the priciest office market in the U.S.

Significant office leases signed in the metro since the start of 2024 include Paramount Group’s 74,000-square-foot deal at 1301 Avenue of the Americas, in Midtown Manhattan. Citizens Bank is the newest tenant at the 1.7 million-square-foot office tower.

In February, skincare and beauty brand Sol de Janeiro USA signed an 11-year lease for 57,203 square feet at One Grand Central Palace. Empire State Realty Trust owns the 1.3 million-square-foot property that rises 55 stories.