Hedge Fund Report - 092011

8/3/2019 Hedge Fund Report - 092011

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Hedge Fund Index More Sublease Opportunity

Every six months, we update the New York City hedge fund index . The index tracks 24 Class A and trophy buildings in Midtown Manhattan which have a highconcentration of boutique hedge fund, investment management, and related financial service tenants. Even as discussion of a sustained market recovery is

questioned, pricing among the top tier buildings has held steady. The high asking rent for direct space isabove $100 per sq. ft. in all but one of these signatureproperties.

September 2011

Low Ask = SubleaseLow Asking Rent High Asking Rent

$59

$74

$115

$49 $52

$81

$49

$135

$90

$105$95

$60$70

$59

$40$64

$100

$135

$98

$66

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

$240

280ParkAvenue

320ParkAvenue

350ParkAvenue

375ParkAvenue

390ParkAvenue

450ParkAvenue

510MadisonAvenue

520MadisonAvenue

540MadisonAvenue

590MadisonAvenue

650MadisonAvenue

660MadisonAvenue

667MadisonAvenue

623FifthAvenue

640FifthAvenue

712FifthAvenue

745FifthAvenue

767FifthAvenue

1330AvenueoftheAmericas

888SeventhAvenue

65East55thStreet

9West57thStreet

40West57thStreet

152West57thStreet

HedgeFundIndex

$150

$140 $145 $140

$110

$140 $135$130

$115$115

$110

$145

$215

$107

$128

$95

$120

$135

$120 $120

$145

$65

$125

Asking

Rent


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Hedge Fund Index - Low Asking Rent

The "low asking rent shown in grey averages $81.00 per sq. ft . This is a modest decrease from April 2011, when the low average was $82.00 per sq. ft. We

have highlighted that the low rent in 14 of the buildings is for s ublease space, which is often discounted due to factors such as shorter remaining term length,condition of the space itself, encumbrances, lack of landlord privity, and general risk often associated with sublandlord credit. This is a significant increase fromsix months ago. The number of sublease opportunities has more than doubled in the index buildings, and evidences a trend that reinforces sublease spaceopportunities will be more plentiful throughout the balance of 2011.

While sublease space may enter the market for a variety of reasons, primarily it is due to tenants disposing of a portion of excess space, or closing theiroperations altogether. However, as shown in this months report, there are several spaces that are available as funds have outgrown their former locations.Most notably:

Hedge Fund Index - High Asking Rent

The "high asking rent shown in red increased in nearly every building on the survey, and now averages $128 per sq. ft. relatively flat from six months ago.

Most notably, the high asking rent exceeds $100 per sq. ft. in all but one of the buildings with such available space. 9 West 57th Street remains the highest-priced building in New York, with a peak asking rent of $215 per sq. ft., followed by 280 Park Avenue at $150 per sq. ft. Following the announcement of newownership through SL Green and Vornado, and a multi-million dollar renovation plan, 280 Park Avenue has seen the highest increase in asking rent on theindex a jump of nearly 43%.

Following suit, 888 Seventh Avenue recently listed a tower floor unit at $145 per sq. ft., a 32% increase in the high asking rent from six months ago. 152 West57thStreets highest asking rent saw a similar increase of 33% to $107 per sq. ft.

Man Group leased nearly 50,000 sq. ft. in a relocation to 452 Fifth Avenue; the firm is giving

up 10,000 sq. ft. at the Lever House / 390 Park Avenue CQS is in the market to double in size from its current 4,000-sf space at 152 West 57 th Street

Partners Group USA relocated to 30,000 sq. ft. at 1114 Avenue of the Americas; a significant

increase from the firms prior 5,100 sq. ft. space at 450 Lexington Avenue

Cerberus Capital leased 109,000 sq. ft. at 875 Third Avenue and placed its similar sized

space on the market at 299 Park Avenue, most of which has a near-term lease expiration

September 2011


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Building Photo

Building and

Address

152 West 57th Street

Between Sixth and Seventh Avenues





Ownership TF Cornerstone, Inc. TF Cornerstone, Inc. TF Cornerstone, Inc.

Floor / RSF Part 22 3,574 rsf Part 321,915 rsf Part 414,031 rsf

Asking Rent $52.00/rsf $80.00/rsf $88.00/rsf

Term Through November 2018 Through May 2015 Through June 2019

Sublandlord RHO Management TH Advisors CQS

Comments Built with 5 windowed offices, conferenceroom, pantry, and open area. Flexibleterm.

Built with one conference room andwindowed open area. Some furnitureavailable.

Built with 3 conference rooms, 1 officeand open area for 17 trading positions.Furniture available.

Floorplan

Newly Available Sublease Spaces

Apri l 2011

September 2011


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Building Photo

Building and

Address

450 Lexington Avenue

Between 44th and 45th Streets

598 Madison Avenue

N/W/C East 57th Street

200 Park Avenue

Between 44th and 45th Streets

Ownership Istithmar PJC 598 Madison Leasing Corp. Tishman Speyer

Floor / RSF Part 39

5,125 rsf Entire 11

5,620 rsf Part 32

11,412 rsf

Asking Rent $40.00/rsf $85.00/rsf $75.00/rsf

Term Through June 2012 Through May 2015 3-10 years

Sublandlord Partners Group USA Global Reach Capital Korn Ferry

Comments Built with open area and 2 conferencerooms. Furniture available.

Built with 11 offices, conference room andopen area. Furniture available.

Newly built space with 5 offices,conference room and large open area.Fully furnished.

Floorplan


Apri l 2011September 2011


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Building Photo

Building and

Address

390 Park Avenue

Between 53rd and 54th Streets

140 East 45th Street

Between Third and Lexington Avenue

Ownership RFR Realty Boston Properties

Floor / RSF Entire 20 10,700 rsf Part 1610,023 rsf

Asking Rent $98.00/rsf $36.00/rsf

Term Through September 2016 Through February 2013

Sublandlord GLG Partners Sterne Agee Leach

Comments Built with 3 conference rooms, column freeopen area for 30 trading positions.Supplemental a/c in place.

Built trading installation with 10 offices, openarea and 2 conference rooms. Furnitureavailable.

Floorplan


Apri l 2011September 2011


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Type Tenant Address Square Feet

Recently Completed Transactions Financial Service Firms

For further information, please contact:Cynthia Wasserberger at 212.812.5816 or [email protected] l.com

September 2011

Hedge fund

in todays changing market

Sublease PDT (Process Driven Trading) 1745 Broadway 55,550

New Man Group 452 Fifth Avenue 49,179

New AEA Investors 666 Fifth Avenue 37,909

Expansion Bank of Mont real 3 Times Square 31,966

New CIFC Deerfield 250 Park Avenue 29,212

Renewal/Expansion Sawaya Segalas & Company 888 Seventh Avenue 18,840

Renewal DeMatteo Monness 780 Third Avenue 10,075

Expansion Williams Capital Management 650 Fifth Avenue 6,368

New EMF Financial Products, LLC 70 East 55th Street 5,835

New Altum Capital Management 681 Fifth Avenue 5,770

New Charter Bridge Capital Management LP 1350 Avenue of the Americas 3,676

New Hagen Investments 17 State Street 3,500

New Contour A sset Management 99 Park Avenue 3,216

New Colchester Global Investors 885 Third Avenue 3,148

Sublease Farley Capital 800 Third Avenue 2,710

September 2011

Hedge Fund Report - 092011

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