Weekly Comp Digest: 40 Year Lease Downtown; Generous Concessions from W&H Properties; Midtown Leases over $100 PSF

Preschool Makes a 40 Year Commitment

Green Ivy signed a 40 year, 75,675 SF lease at 40 Wall Street. The starting rent is in the $30s PSF and climbs up to the $50s. This is a win-win for landlord Trump with a long term lease as well as for the preschool, which locked in favorable rents with modest escalations in a heating market. Another tenant in the building, First Investors, also signed a relatively long term lease recently: 15 years with rent starting in the $30s PSF.

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W&H Properties: Top Dollar Rent, Generous Concessions

Interpublic Group leased two and a half floors totaling over 86,000 SF at 1400 Broadway. The starting rent for the deal is in the mid $40s PSF, which is on the high side for Times Square South but in line with other recent leases in the building (On Deck Capital and VeriFone). W&H Properties provided Interpublic with a generous TI package effectively reducing the rent to around $39.

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Triple Digit Rents in Midtown

Here are several recent examples of Midtown deals with rents over $100 PSF: Ascot Underwriting signed a lease for 5,764 SF on the 40th floor of the Bank of America Tower. The rent will average around $110 over the 10 year term. Milbank, Tweed, Hadley & McCoy will take 10,799 SF on the 26th floor of 450 Park Avenue for the same rent and term as Ascot. Ellis Lake Capital leased 5,378 SF on the 40th floor of 444 Madison Avenue for an average rent just above $100 PSF.

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