The Feil Organization Inks Plaza District Lease

551 Fifth Ave. is also known as the Fred F. French Building. Image courtesy of The Feil Organization

The Feil Organization has signed a 20,955-square-foot, 10-year commitment at 551 Fifth Ave., a 430,165-square-foot Class A office tower in Manhattan’s Plaza District. Eaglestone Holdings, a specialty infrastructure contractor in the Northeast region, is the new tenant. The asking rent was $58 per square foot.

PJ Mechanical, a subsidiary of Eaglestone, will occupy most of the space, along with New York Energy and Environmental. Eaglestone will also relocate its headquarters to the property from 55 Broad St., currently under an office-to-residential conversion. The roster at the new location includes New York Advisory Services, Argent Ventures, Sadis & Goldberg, Kamber Management and Faros Properties, according to CommercialEdge.

The owner picked up the property from MetLife Real Estate Investment in 2002, as part of a $268 million portfolio deal, the same source reveals. Designed by Sloan & Robertson and completed in 1927, the 38-story Art Deco-style tower was added to the National Register of Historic Places in 2004. Also known as the Fred F. French Building, the property features 5,494- to 20,297-square-foot floorplates, concierge desk and floor-to-floor windows.

551 Fifth Ave. is close to Grand Central and 14 miles from John F. Kennedy International Airport. The Feil Organization’s Head of Commercial Office Leasing Andrew Wiener and Vice President of Retail Leasing Randall Briskin negotiated on behalf of the landlord.

Significant office leases in Manhattan

As of September, Manhattan’s average asking rate reached $70.05 per square foot, marking a 0.5 percent contraction year-over-year, a recent CommercialEdge report shows. Remaining the priciest office market in the nation, the borough had a vacancy rate of 17.7 percent, the highest one in the Northeast region.

A recent notable leasing deal was Weill Cornell Medicine’s new commitment at 575 Lexington Ave. The 30-year, 100,000-square-foot expansion brought the tenant’s footprint to 300,000 square feet, marking one of the largest deals signed in New York City so far this year.

Another significant transaction was Tower Research Capital’s 15-year lease comprising 121,903 square feet at 120 Broadway in Lower Manhattan. The tech company will relocate to Silverstein Properties’ 40-story tower in late 2024.