Articles of the week ending July 24th
AI Company Mercor Takes 26K SF at Durst’s One World Trade Center
By Amanda Schiavo, Commercial Observer
Mercor, an AI company, signed a five year lease for 25,550 square feet at One World Trade Center, bringing the building to nearly 100 percent occupancy and reinforcing strong demand from AI firms for premier Manhattan office space.
Conversions Likely Face Higher Costs, More Scrutiny After Former Pfizer HQ’s Near Collapse
By Ciara Long, Bisnow
The structural incident at MetroLoft and David Werner’s Pfizer headquarters conversion is expected to increase lender, insurer, and engineering scrutiny on future office to residential projects, potentially raising costs and extending timelines, while strong housing demand continues to support the conversion market.
Hollywood Talent Agency Leases 101K SF At Empire State Building
By Ciara Long, Bisnow
United Talent Agency signed a 101,000 square foot lease at the Empire State Building, consolidating its New York offices and reinforcing strong demand for premier Manhattan office space amid the borough’s strongest leasing market since 2002.
JPMorgan To Sell Stake in Fisher Brothers’ 605 Third Avenue
By Rich Bockmann, The Real Deal
JPMorgan Asset Management is seeking to sell its 49 percent stake in 605 Third Avenue at a $425 million valuation, with Fisher Brothers planning to partner with a new investor to reposition the office tower and capitalize on improving demand in the Midtown office market.
BXP seeks up to $750 million for 7 Times Square ground lease
By Andria Cheng, CoStar News
BXP is marketing the leasehold interest in 7 Times Square for $700 million to $750 million, testing investor demand for high quality Manhattan office assets as leasing activity, occupancy, and office sales continue to recover.
Rialto and Hines issue $229M refi for PGIM-controlled 295 Fifth Ave
By C. J. Hughes, Crain’s New York Business
The owners of 295 Fifth Avenue secured a $228.9 million refinancing to support the repositioned office tower, reflecting continued lender confidence in well located Manhattan office assets despite the building being 63 percent leased.
AI Firm Legora takes space at 11 Maidson
By Larry Getlen, Commercial Observer
Legora signed a 10 year lease for 98,420 square feet at 11 Madison Avenue, relocating its New York headquarters and bringing the building to full occupancy.
ESRT Putting 1359 Broadway Up for Sale, Seeking $225M
By Cathy Cunningham, Commercial Observer
Empire State Realty Trust has put 1359 Broadway up for sale with an expected price of about $225 million as part of its strategy to upgrade its portfolio and recycle capital.