Occupancy at LCOR’s LEED for Core and Shell Gold-certified 545 Madison Avenue has inexorably moved higher over the past year: we noted here at gbNYC when the 17-story tower crossed the 50-percent, 70-percent, and 80 percent-leased thresholds, pointing out the success the tower has had in attracting new tenants over the past 12 months since it was half vacant.
Now, after the investment advisory firm Peter B. Cannell & Co. recently signed a a 10-year lease for the entire 8000-square-foot 11th floor, 545 Madison Avenue is 90-percent filled. Just the 3rd and 16th floors (9200 and 6800 square feet, respectively) remain available; asking rents in the building are in the low $70s to $80s per square foot.
Back in June, Ogden CAP Properties – a Milstein family residential real estate investment concern – signed a 10-year, 27,000-square-foot lease for 545 Madison Avenue’s entire fourth, fifth, and sixth floors, boosting overall occupancy past 80 percent at the time.
Although the great recession forced LCOR to drop its asking rents from the $70s into the mid-$60s per square foot, and caused leasing efforts to stall, the developer’s repositioning strategy continues to pay dividends. LCOR reopened the 140,000-square-foot 545 Madison in 2008 aiming for 17 or fewer boutique financial services and law firm tenants. Indeed, the property’s 10,000-square-foot floor plates are prime for those types of tenants.
“The plan was to have it leased two years ago, but unfortunately the launch coincided with the market’s collapse. But ultimately this is a great building in a great location, which led to our recent success,” an LCOR spokesperson told Real Estate Weekly. “We were looking for the tenants from financial services tenants looking for full-floor identity without having to spend $150 per square foot.”
545 Madison Avenue was the 27th LEED Gold certification awarded by USGBC here in New York City. The gut renovation of the original building – which dated from 1956 – was executed by Lend Lease and designed by New York City-based Moed de Armas & Shannon Architects. The project stripped the tower down to its structural frame and installed a new floor-to-ceiling glass curtain wall and high-performance HVAC, electrical, and mechanical systems.
Other notable tenants at the tower include Cliffwater LLC, BHR Capital, RNK Capital, Siemens Enterprise Communications, and the Home Shopping Network; retail tenants include Alfred Dunhill, Oscar Blandi and Officine Panerai.