200,000 s/f Lex lease.

Insurance giant, St. Paul Travelers, will be taking nearly 200,000 s/f of space at 485 Lexington, sources say.

The company has been looking to consolidate its offices, which are currently located in three midtown buildings and three downtown buildings, since St. Paul and Travelers merged in April of 2004. "There are a number of reasons for the consolidation, but operational efficiencies certainly is a major factor," said Shane Boyd, a spokesman for the company.

Boyd indicated that the company had been in the market for 200,000 s/ f but declined to comment where that search had taken them or if a deal had yet been reached.

"There's nothing final," Boyd said.

The lease at the SL Green owned property would be the second major transaction in 485 Lexington Avenue in almost as many months. In September, Citigroup leased roughly 300,000 s/f in the over 900,000 s/f property.

The deal may open the door for yet another big lease in what is panning out to be a hot fourth quarter for large transactions.

It was rumored that St. Paul Travelers had been competing with Bank of America for a 200,000 s/f block in the Marsh & McLennan owned portion of 1166 Avenue of the Americas. Now, with St. Paul Travelers out, many expect Bank of America will take the space before the end of the year.

Eager to move some of its offices from 9 West 57th Street because of a feud with building owner Sheldon Solow and also wanting to shift its operations close to where its new tower at One Bryant Park will be, Bank of America originally considered taking a large lease at the Bloomberg Building. But Citigroup swooped in before Bank of America could sign a deal and, save for Bloomberg's space, took nearly all of the building's remaining vacancy in what amounted to hundreds of thousands of s/f.