CS First Boston finalizes lease at MetLife's 11 Madison.

CS First Boston Corporation signed a lease agreement for more than 1.1 million square feet at Eleven Madison Avenue, a commercial office tower owned by Metropolitan Life Insurance Company. The lease execution was a culmination of negotiations that had been ongoing for more than 18 months.

In January of this year, the companies announced an agreement at a City Hall press conference, during which Mayor Rudolf Giuliani commended First Boston's plans to consolidate its operations at Eleven Madison.

The investment banking firm signed a long-term lease of up to 20 years for 15 floors at Eleven Madison Avenue. The 2.2 million square-foot property encompasses the entire block between Madison and Park Avenue South and 24th and 25th Streets. It was formerly part of MetLife's corporate headquarters, which includes the complex located at One Madison Avenue between 23rd and 24th Streets.

The transaction - the largest office lease concluded in Manhattan during the 1990s was negotiated on behalf of CS First Boston by the Edward S. Gordon Company, Inc. (ESG). August DiRenzo and Vincent Tuminelli of Cushman & Wakefield acted as consultants to MetLife. Cushman & Wakefield has been named exclusive leasing agent for the remaining space in the building.

"Eleven Madison will provide CS First Boston with one of the most technologically sophisticated headquarters facilities in the investment banking and securities industry," notes Martin Turchin, vice chairman of ESG. "The building provides the infrastructure that will enable CS First Boston to maintain its global leadership position well into the 21st Century."

Turchin and Lewis Miller, consulting director, were the ESG team members who represented CS First Boston in the transaction.

The building's open, expansive floorplates are ideally suited for CS First Boston's extensive trading operations. CS First Boston will begin to occupy 11 Madison in the first quarter of 1997 and will ultimately house most of its Manhattan workforce at the building. The firm will consolidate its operations from several Manhattan locations, including 55 East 52nd Street, 12 East 49th Street and 509 Madison Avenue.

The CS First Boston transaction is expected to have far-reaching, beneficial effects for lower Madison Avenue and the entire Midtown South market. This is an area that has bounced back strongly following the recent downturn in the local real estate market; the CS First Boston relocation will add even more impetus to that budding recovery.

A major redevelopment program is underway at Eleven Madison and will include new heating, ventilation and air conditioning systems, state-of-the-art computer and telecommunication capacity and modernized elevators. The project's costs are expected to exceed $300 million, and the anticipated completion date is slated for year-end 1996.

"MetLife is going well beyond a total systems upgrade," said Dominick Prezzano, senior vice-president in charge of MetLife's Corporate Property Management. "In addition to restoring the exterior of the building to its original splendor, we also plan to refurbish and maintain Eleven Madison's famous three-story lobby." The lobby features Italian creme marble floors and walls, exquisite art-deco detailing, vaulted ceilings and unique silver-leaf sculptures."

"We are delighted at the prospect of having such a large and prominent tenant as our new neighbor," said Harry P. Kamen, chairman and CEO of MetLife. "First Boston's move to Eleven Madison Avenue comes at an exciting time and will certainly contribute to the resurgence of Midtown South."

Allen D. Wheat, president and COO of CS First Boston, noted "We are very pleased to have confirmed our move to Eleven Madison Avenue. It will make us more efficient by consolidating virtually all of our New York employees in one location and more productive by more than doubling the amount of sales and trading space."

Headquartered in New York since 1868, MetLife is one of the world's largest and most prominent insurance and financial services companies. Together with its affiliates, the company has more than $164 billion of assets under management, of which approximately $26 billion is invested in mortgages and income-producing properties throughout the United States.

CS First Boston Corporation is a leading global investment banking and securities firm working in close cooperation with Credit Suisse. The company serves both suppliers and users of capital around the world. Through 33 offices in 22 countries, CS First Boston provides comprehensive financial advisory and capital-raising services and develops and offers innovative financial products and services for a broad range of clients.