It was another landmark week for SL Green. The office REIT inked long-term deals for CBS Broadcasting and Healthfirst in Manhattan, while one of its subsidiaries closed two leases for PepsiCo and Citigroup in the Westchester/Southern Connecticut region.
The four leases total up to more than 610,000 square feet.
Three out of the four transactions were renewals, which Steven Durels, executive vice president and director of leasing and real property for SL Green, cited as further proof that more tenants are sticking with landlords they know they can trust, given the current market. "Large tenants are choosing to lock in favorable occupancy costs with financially stable landlords while also providing building owners with long-term stability and rent increases over and above the in-place rent," he said.
CBS signed an early extension of its 281,896-square-foot lease at 555 W 57th St. The television network has agreed to remain in the space through the end of 2023.
The 20-story, 1 million-square-foot office tower was built in 1973 in the West Side. Additional tenants include BMW of Manhattan, the City University of New York and St. Luke's Roosevelt. SL Green purchased the property in 1999, according to CoStar information.
Michael Laginestra, Scott Gottlieb and Andrew Sussman with CBRE represented CBS in the lease transaction, while Durels represented SL Green.
Healthfirst signed a 20-year, 172,577-square-foot lease for floors 16 through 19 at 100 Church St. in downtown Manhattan, slated to commence in fall 2011. Rent was not disclosed by asking rates for the building's upper floors are $36 per square foot, according to CoStar information.
The nonprofit managed care organization is relocating its headquarters from 25 Broadway, where it currently occupies 87,322 square feet. Healthfirst's offices at 123 William St., which total 73,500 square feet, are also being moved to the new location.
SL Green acquired 100 Church in January, through a foreclosure auction. Built in 1958, the 21-story, 1.05 million-square-foot office tower is in the World Trade Center area.
At the time of SL Green's acquisition, the building was 58% vacant. According to Durels, SL Green immediately stepped up the marketing of the property and completed major improvements to the lobby, entrance and windows, along with mechanical upgrades.
"Our goal was to revitalize a building that had been languishing for over 5 years," he said. "The building is fundamentally very strong with large and efficient center core floors, exceptional convenience to public transportation and a strategic location bridging Tribeca and the Financial District."
Derek Trulson, Bill Peters and Daoud Awad with Jones Lang LaSalle represented Healthfirst in the lease. Brian Waterman, James Kuhn, John Fanuzzi, Hal Stein and Lance Korman of Newmark Knight Frank handled the deal for SL Green.
Further north, SL Green subsidiary Reckson signed two major renewals.
PepsiCo inked a 75,000-square-foot extension at 100 Summit Lake Drive in Valhalla, NY. The beverage company will continue to anchor the building for another 10 years. Paul Jacobs of CBRE represented PepsiCo.
The four-story, 250,000-square-foot office building delivered in 1988 and is part of Reckson's Summit at Westchester business park. Additional tenants include ConEdison Solutions and Towers Watson.
Reckson also signed Citigroup to a five-year early renewal at 750 Washington Blvd. in Stamford, CT. The financial services giant will continue to occupy 82,000 square feet on floors seven through nine. Steve Banker and Neil Goldmacher with Newmark Knight Frank represented Citigroup.
The 11-story, 192,000-square-foot office building was built in 1989 and is one half of Stamford Towers. Oppenheimer & Co. and UBS Financial Services also occupy space in the building.