Hedge Fund Dabroes Management Inks 5-Year Lease at 1095 Sixth Avenue

It’s anecdotal, of course, with respect to whether the tower’s energy-efficient renovations had anything to do with it, but a hedge fund’s recent 5-year, 12,000-square-foot lease on the 24th floor of 1095 Sixth Avenue could bode well for improving commercial real estate conditions across New York City – whether green or not.

We’ve written about 1095 Sixth Avenue previously; the tower, owned by the Blackstone Group, sits across 42nd Street from LEED Platinum hopeful Bank of America Tower and is undergoing a two-year, $408.9 million renovation. Designed by Moed de Armas & Shannon Architects and Gensler, the entire shell of what was once the Verizon Building is being replaced, effectively creating an entirely new structure; the tower’s marble exterior is being replaced with an energy-efficient glass curtain wall. Unlike the Bank of America project, and despite its green features, 1095 Sixth Avenue is not seeking a LEED rating. Tishman Construction is the construction manager on the project.

When the credit crisis first hit earlier this year, iStar Financial announced that it would seek to sublease the 170,000 square feet it had leased at the 1 million-square-foot tower, while as of August, MetLife was looking to unload a quarter of its 400,000 square feet. The softening market- even in as prime a location as across the street from Bryant Park- appeared to present serious repercussions for numerous green projects, including SJP Properties’ LEED Gold hopeful 11 Times Square on Eighth Avenue.

While it’s hard to draw any real conclusions from the deal, it’s notable that Dabroes Management, a hedge fund, just signed a five-year lease for 12,200 square feet on 1095 Sixth Avenue’s 24th floor. Asking rents for the prebuilt space were $135 per square foot. (Note that iStar’s 15-year lease was for that same amount). CB Richard Ellis represented Blackstone in the transaction, with Cushman & Wakefield for Dabroes. While we’re obviously still concerned about what the recent events on Wall Street will mean for local green real estate generally, it’s obviously a positive sign that deals are still moving forward within high-profile green commercial office space.

About Stephen Del Percio

Stephen Del Percio has written for gbNYC+ since 2006 and currently serves as in-house counsel for one of the world's largest engineering, construction, and technical services companies. He earned a B.Eng. from Columbia, his J.D. at William & Mary, and lives in New York City with his wife and daughter. You can follow Stephen on Twitter, email him at stephen@gbNYC.com, or join gbNYC on Facebook to continue the conversation.

about gbNYC

gbNYC is a multi-disciplinary consulting and real estate services firm. In addition to representing office tenants and commercial buyers in leasing and acquisitions, we also provide innovative consulting solutions from a unique, green building perspective. We advise on green building financial incentives, comment on proposed green building marketing strategies, author white papers, treatises, and market analyses, organize seminars on the LEED process and professional accreditation, and provide advice and analysis on green building risk management and the overall state of green real estate, leasing, and construction, in New York City and beyond.

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