Asset Manager Stone Ridge Takes 100K SF at One Vanderbilt
Stone Ridge Asset Management plans to move its New York City offices to One Vanderbilt. The asset manager signed a 15-year lease for nearly 100,000 square feet in SL Green Realty Corp.’s 58-story tower between East 42nd and East 43rd streets, with rents that will increase to $245 per square foot over the lifetime of the deal, Business Insider reported. The 1.7 million-square-foot One Vanderbilt has had a flurry of activity in recent months, as tenants have flocked to new-construction offices, making it the champion of the Manhattan office market. Tenants leased 11.5 million square feet of Class A space versus 3 million of Class B space in 2020, according to a report. SL Green is also reportedly seeking asking rents of more than $300 per square foot for the top floors of One Vanderbilt, which would set a record for taking rent if SL Green gets close to it. The landlord was also recently able to score a $3 billion refinancing on One Vanderbilt — the largest fixed-rate, CMBS loan ever secured by a single asset — and it was around 90 percent leased as of midyear.
Health fintech Cedar quadruples HQ at Rudin’s 32 Sixth Ave
Health care fintech firm Cedar is quadrupling its headquarters with new digs in Tribeca. The Manhattan-based company has signed a five-year, 66,800 square-foot lease to take the entire 18th floor and a portion of the 17th at Rudin Management’s 32 Sixth Avenue, according to the landlord. Cedar’s new pad, which is nearly four times the size of its current 17,000-square foot space at RFR’s 95 Morton Street in the West Village, is a sign of strength in Manhattan’s struggling office market, where availability hit a record high of about 17 percent in recent months as rents fell. The lease also points to companies’ confidence that return-to-office plans will survive the Delta variant. A national survey of 1,000 adults conducted over three weeks this summer by market research company Morning Consult found the majority of workers had already returned to the office, the New York Times reported.
Vornado to sell five Manhattan retail properties, takes loss of $7M
Vornado Realty Trust has agreed to sell off five struggling retail properties in Soho and the Upper East Side for $184.5 million, resulting in a loss of about $7 million. The New York-based real estate firm, led by Steve Roth, is selling properties at 677-679 Madison Avenue, 759-771 Madison Avenue, 828-850 Madison Avenue, 478-482 Broadway and 155 Spring Street, according to a statement from the company. Vornado declined to comment beyond the statement. Vornado, which didn’t disclose the buyer, said the properties have “negative income” and occupancy stands at just 30 percent. The properties are being sold in three separate transactions. The sale of the Madison Avenue properties is expected to close in the third quarter, while the Soho ones are expected to close in the first quarter of 2022, according to Vornado.
Emirati wealth fund launches $1B U.S. industrial real estate venture
An Abu Dhabi-based sovereign wealth fund is betting big to capitalize on the hot industrial real estate market in the U.S. “Mubadala is seeking to invest directly in industrial real estate in the U.S., and to do so at scale,” Michael Levy, CEO of Crow Holdings, told the publication. “This is a true joint venture, with Crow Holdings serving as both a developer and capital partner.” The industrial sector has emerged as a hot sector during the pandemic, as tenants led by Amazon have rushed to take up warehousing and distribution space amid a boom in e-commerce.