McGraw Hill Financial, the parent company of Standard & Poor's, has renewed its office lease for 900,027 square feet at 55 Water St. in New York City.
The extension, covering the entire 34th through 46th floors and a portion of the concourse and 52nd floor in the building, commences in 2020 when the anchor tenant's existing term was set to expire. The financial research and analysis firm is consolidating its space, giving back the 33rd, 47th and 49th floors that it currently leases.
"We will use this opportunity to upgrade our floors into cohesive, state-of-the-art work environments that encourage collaboration and include upgraded Wi-Fi, telecommunications and electrical systems," said Mitra Meshgin-Poosh, senior vice president of global real estate services at McGraw Hill Financial. "In this new configuration, we are placing like teams together and making the best use of available space while eliminating existing vacant real estate."
The 52-story, 3.6 million-square-foot, 4-Star office tower was constructed in 1973, rising 687 feet above 3.8 acres in the Financial District submarket of Manhattan, between Old Slip and Broad Street. It features two public plazas, a 600-car covered parking garage, on-site cafeteria, and advanced infrastructure including above-standard power with emergency generator and extended HVAC hours.
Other tenants in the building include Hugo Boss, Emblem Health and Liberty Mutual.
The asset is owned and managed by New Water Street Corp., a wholly-owned entity of The Retirement Systems of Alabama, a large U.S. public pension fund.
"This lease renewal is the culmination of our efforts to upgrade 55 Water Street via a significant capital improvement plan," said Bruce Hodges Jr., director of leasing and tenant relations at New Water Street Corp.
The owner is currently undergoing an extensive capital improvement program that includes planned upgrades to the lobby, completed upgrades to the building cafe, and more than $100 million in general improvements following Superstorm Sandy that include a flood barrier system and the relocation of various critical systems above grade or enclosing systems in submarine-like waterproof enclosures to ensure uninterrupted service in the event of another disaster.
"This agreement is just another example of how Lower Manhattan’s continued resurgence has made it a highly attractive place for many of New York City’s greatest companies, and how well-positioned buildings like 55 Water Street have benefited from this resurgence," concluded Howard Fiddle, vice chairman with CBRE Group, Inc.
Howard Fiddle, Dave Caperna, Brad Gerla, Evan Haskell and Mary Ann Tighe with CBRE represented the landlord. Meyer Last, Jennifer Yashar and Mallory Beberman with New York law firm Fried Frank acted as counsel to New Water Street Corp.
Cara Chayet, Michael Liss, Ken Meyerson, Paul Myers and Ramneek Rikhy, also with CBRE, represented McGraw Hill Financial in lease negotiations.