Carnegie tower deal affirms high-end market demand.The investment fund, India Equity, has signed a lease for the entire 45th of Carnegie Hall Tower Carnegie Hall Tower is a 60-story skyscraper located on 57th Street in New York City. Part of a cluster of three very tall buildings (along with CitySpire Center and Metropolitan Tower), the tower was built in an architectural style in harmony with its neighbor Carnegie Hall, a , the high-end boutique office building on 57th Street that commands sweeping views of Central Park and some of the highest rents in the city. India Equity's deal won't disappoint those who have come to derive a vicarious vicarious /vi·car·i·ous/ (vi-kar´e-us) 1. acting in the place of another or of something else. 2. occurring at an abnormal site. vi·car·i·ous adj. 1. thrill every time there is a deal that rises higher into the stratosphere stratosphere (străt`əsfēr), second lowest layer of the earth's atmosphere. The level from which it extends outward varies with latitude; it begins c.5 1-2 mi (9 km) above the poles, c.6 or 7 mi (c. for Manhattan rents. While it may not be a record, it is among a very short list of leases to register at $170 per s/f, the price the tenant will pay for the last 5 years of the 10-year term. The rent for the 8,300 s/f space is $160 per s/f for the opening 5 years. Although the lease had been in negotiation for weeks, it is an affirmation that the market for high-end space hasn't receded as a result of the turbulence in the debt markets and the problems it has caused on Wall Street. Hedge and private equity funds are among the big losers among the financial firms that were hurt by the subprime defaults and the resulting freeze of the securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. debt market. There was speculation that the hit could impact the market for high-end space in the city, since it was these firms who constituted the bulk of demand. Both hedge and private equity funds were heavy buyers of securitized debt including securities backed by the riskiest loans such as subprime debt. An array of them have folded in the wake of the credit crisis and many have lost money, including funds at major financial institutions such as Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. and Bear Steams among others. "Right now, I don't think that there has been much impact on the high end market," said Billy Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , an executive with the real estate services firm, Newmark Knight Frank, who is the lead leasing agent for Camegie Hall Tower. "There's so much demand for relatively little space in the market that, even with the problems, I think pricing for the time being is supported. Plus, there are other industries besides hedge funds hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" and private equity funds that come into a building like Camegie Hall Tower." Cohen said that there are another four tower floors in the building that will soon become available and which he has just begun to market. "We're seeing a lot of action on them from a variety of tenants so I don't think that the market is slowing down," Cohen said. |
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