In a series of separate transactions that highlight the strong leasing activity at the William Kaufman Organization’s (WKO) 437 Madison Avenue, three companies have signed long-term leases and expansions totaling approximately 35,682 square feet at the40-story, 850,000 square-foot trophy property in the heart of Midtown East.
In the largest transaction, Munich American Reassurance Company (Munich Re) is opening a new U.S. Life office in the building. The reinsurer’s new 10-year, 18,650 square-foot lease encompasses the entire 26th floor of the property. The company is currently located at 1177 Avenue of the Americas and expects to take occupancy in the fourth quarter of 2017.
Also signing is investment firm Eos Management, L.P., which has taken a seven-year, 9,576 square-foot lease on a portion of the 14th floor of the building. The company, an alternative investment firm with approximately $1.5 billion of capital under management, is an active investor in the private equity, public equity and credit markets. It plans to move from 320 Park Avenue to the building in the third quarter of 2017.
And lastly, WKO has completed an expansion with law firm Montgomery McCracken Walker & Rhoads LLP, which is expanding by 7,458 square feet in the building. In total, the firm will now occupy 35,755 square feet spanning the entire 23rd and 24th floors.
The new deals come on the heels of several recent leasing successes at 437 Madison Avenue. Over the last six months, Sage Realty Corporation, the leasing and management division of WKO, has also completed new leases with global investment firm Lighthouse Partners (17,750 square feet) and investment management firm Prelude Capital (19,524 square feet).
According to Michael Lenchner, Vice President and Director of Leasing at Sage Realty Corporation, the flurry of leasing activity is based on the success of WKO’s recently completed, multi-million capital improvement program, which features a redesigned lobby and arcade area, a new plaza, renovated elevators, upgraded building systems and a 15th floor “sky lounge” with outdoor conference rooms, sunrise yoga classes and spectacular views of St. Patrick’s Cathedral.
“Over the last two years, we have transformed 437 Madison Avenue into one of Midtown East’s leading destinations for law firms, financial companies and media tenants,” Lenchner said. “These new leasing transactions further demonstrate the ongoing resurgence of the Grand Central office district, the quality of our building and our convenient and desirable location.”
“In response to customer demand and the evolving market, we have been rapidly expanding our Manhattan-based Financial Reinsurance and Integrated Analytics teams,” stated Mike DeKoning, President and CEO of Munich American Reassurance Company, commenting on the new lease at 437 Madison Avenue. “In addition, we are building on our current actuarial capabilities by tapping into the strong actuarial talent pool that exists in the New York insurance and reinsurance market.”
“We are thrilled to expand our presence at 437 Madison,” said Phyllis H. Weisberg, managing partner of Montgomery McCracken’s New York office. “The new space will better accommodate our continued growth in the New York market.”
Mr. Lenchner, along with a Jones Lang LaSalle leasing team of Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster, represented building ownership in both transactions. Nick Zarnin and Craig L. Lemle of Savills Studley represented Munich American Reassurance Company, while Lindsay Ornstein and Lauren Davidson of Transwestern represented Eos Management L.P. Asking rents in the building range from $80 to $110 per square foot.
Lenchner notes that Sage is currently marketing a contiguous block of 38,178 rentable square feet on the building’s top two floors (39th and 40th) that are available for long-term lease immediately. These floors, which can be leased separately, are each 19,089 square feet.
Originally built in 1967 and designed in the Modernist style by the renowned architectural firm Emery Roth & Sons, 437 Madison Avenue is long regarded as a premier property in the Midtown East office marketplace. The building is currently home to a prestigious tenant roster including Omnicom Group Inc., Medallion Financial Corp. and Kekst and Company and Carnegie Corporation of New York.
For more information about 437 Madison Avenue, please visit the Sage Realty website athttp://www.sagerealty.com/.
About the William Kaufman Organization
The William Kaufman Organization, a multigenerational real estate company founded by its namesake in 1924 and now led by Jonathan Kaufman Iger, has developed and repositioned over six million square feet of real estate in New York City. The current portfolio consists of 6 class A commercial office buildings, totaling over three million rentable square feet, along with additional real estate assets. For more information, visit http://www.sagerealty.com/
