Midtown skyscraper across from Grand Central Terminal is now 54% pre-leased.
The Carlyle Group has expanded its 15-year lease at SL Green’s One Vanderbilt by adding 32,592 square feet. Asking rents in the office tower range from $140 per SF (base floors) to over $200 per SF (upper levels), according to GlobeSt. The Midtown skyscraper is expected to be completed in August 2020.
By the numbers: The 1.7 million SF office development is now 54% pre-leased.
Dig Deeper: When Carlyle signed its initial lease (94,367 SF) at the building last year, SL Green agreed to take over the the company’s existing lease at Tishman Speyer’s 520 Madison Ave. In October, Tishman denied “consent for Carlyle to assign the lease to SL Green.” Carlyle subsequently filed a lawsuit countering that its lease with Tishman (expiring in 2031) has a technical loophole permitting the deal.
Bottom line: The lease at One Vanderbilt is not contingent on Carlyle’s existing lease being transferred to SL Green.
Power of History: The deal reminds us of when Virgin Megastores occupied two prime retail spaces at Vornado’s 1540 Broadway and Related’s 52 East 14th Street. The 200-year leases were around 80% below market. When it became clear that buyouts were not a viable solution, Vornado’s Steve Roth teamed up with Related’s Stephen Ross to buy the entire Virgin Megastores North America. Love the creativity!