Defying predictions that everyone will soon work from home — and the reality of a still struggling Manhattan office market — another major tenant has signed a jumbo Midtown lease.
Global law firm Mintz, Levin, Cohn, Ferris, Glovsky and Popeo is moving its Manhattan headquarters to SL Green’s 919 Third Ave. The deal for 101,394 square feet is one of the city’s largest this year.
The 20-year commitment includes floors 37-39 and part of the concourse at the 47-story tower at East 55th Street, which is also home to Bloomberg and Schulte Roth. Iconic burger joint PJ Clarke’s is joined to the tower at the hip.
Although its new digs will be about the same size as Mintz, Levin currently has at 666 Third Ave., improved floor design will enable the firm to add “significantly more attorneys,” according to SL Green executive vice-president Steven Durels. The asking rent was $80 per square foot.
Durels called the lease “further confirmation of an improving market as tenants increasingly make long-term commitments in preparation for a return to office.”
Stephen J. Gulotta Jr., managing member of Mintz’s New York office, said the firm “is coming off six consecutive years of record revenues and profits. We are growing rapidly and we believe 919 Third is the perfect location for us to continue that growth.”
Mintz, Levin’s is the latest in a succession of counter-intuitively large office deals that have been completed this year despite howling, near-20 percent Manhattan availability — perhaps the worst ever.
The commitments are all the more remarkable for including tenants of many kinds at addresses from the Battery to within a few blocks of Central Park.
Downtown, law firm Fried, Frank renewed on 400,000 square feet at One New York Plaza overlooking the harbor. On the far West Side, Coinbase set up its first New York office at 55 Hudson Yards.
In Midtown South, spirits-maker Beam Suntory moved its headquarters from Chicago to nearly 100,000 square feet at landmarked 11 Madison Ave.
And in Midtown’s heart, pharmaceutical firm Schrodinger’s took 109,000 square feet at 1540 Broadway, Empire Health grabbed 70,000 square feet at 1 Penn, and private equity firm Hellman & Friedman signed at 425 Park Ave., the first new lease there in two years.
Meanwhile, as we reported last week, Chubb Group is in advanced talks for a quarter-million square feet at 550 Madison Ave. A deal could be finalized soon and several other leases are said to be in the works at the former Sony headquarters.
Newmark’s Moshe Sukenik, Eric Zemachson and Jason Perla represented Mintz at 919 Third Ave. SL Green was represented in-house.
Jewish community day-school Shefa is expanding and moving to the West Side, thanks to some interesting circumstances on West 60th Street.
Shefa, Hebrew for “abundance,” just purchased a 99-year ground lease for 75,000 square feet on the entire, long-vacant 11-story property from Extell. The institution for educationally challenged pupils in grades 1-8 will make 17 W. 60th St. its new home, growing from just 25,000 square feet at 40 E. 29th St.
Although terms were not released, city Finance Department records show the price as $49.5 million.
“This transaction enables Shefa School to pursue its mission in an ideal location steps from Central Park and the Columbus Circle transit hub,” said Ilana Ruskay-Kidd, the founder and head of school. “It will facilitate our effort to support our students’ strengths while helping them to overcome their challenges.”
Shefa was represented by a JLL team headed by Mitchell Konsker and Matthew Astrachan. Extell acted in-house.
But the move was only made possible when Extell abandoned a plan to raze 17 W. 60th for a new project that would include the home of the New York Institute of Technology at 1855 Broadway next door.
Extell signed a contract to buy 1885 Broadway for $90 million 2019, but NYIT — which had planned on moving to Queens — changed its mind. Extell sued and the case is now in court.
With a much smaller footprint on which to build, Extell decided to sell the 17 W. 60th leasehold to Shefa. The school is paying to build out the gutted building with the help of $60 million in mostly tax-exempt bonds through the city’s BuildNYC program to aid nonprofit institutions.