Estee Lauder signs 15-year lease for GM building HQ.

In one of the last transactions to be announced by CB Richard Ellis and Insignia/ESG as two separate companies, the firms respectively represented both the landlord, 767 Fifth Avenue, LLC, (an indirect subsidiary of Conseco Inc.) and tenant, The Estee Lauder Companies Inc., in arranging a new 15-year 310,000 SF lease for its headquarters at 767 Fifth Avenue, the General Motors Building.

The Insignia team of Gregory Tosko, Ken Meyerson, Scott Gottlieb, and Matthew Wolfson represented Estee Lauder, while CBRE's Mary Ann Tighe, Craig Reicher and Megan Sheehan acted for the landlord.

"The Estee Lauder team performed an exhaustive search of alternatives in the market over the course of the past three years," said Tosko. "While the market continues to provide tenants with many attractive alternatives, 767 Fifth Avenue offers the best combination of quality, location and economics for The Estee Lauder Companies. In addition, the new lease provides the flexibility and protections appropriate for The Estee Lauder Companies' long-term occupancy in the building."

"Of course Conseco was keen to retain Estee Lauder as a tenant," said Tighe. "The GM Building is a magnet for world-class office tenants such as Weil Gotshal, Bank of America, and Salomon Smith Barney, among others. It seems fitting that Estee Lauder, which defines prestige for consumers all over the world, should house its headquarters at the GM building, undisputedly one of the world's great buildings."

The Estee Lauder Companies occupies several floors in the GM Building. The new lease will take effect upon the expiration of the existing lease in April 2005. The 1.9-million SF 50-story GM Building was built in 1968.

Counsel to The Estee Lauder Companies on the transaction was a Weil, Gotshal & Manges LLP team led by J. Philip Rosen along with Alan Lascher and Jeremy Goldman, while the landlord was represented by Kirkland & Ellis led by Steve Tomlinson along with Jennifer Morgan and Mukang Cho.

"We are very pleased to be able to remain at our home of so many years," said William P. Lauder, COO of The Estee Lauder Companies. "This decision meets our objectives of occupying a world-class building in a premier New York City location, with attractive economics."

According to Chuck Cremens, president and CEO of Conseco Finance, "Estee Lauder is a first-class tenant with a long history at the GM Building and we are happy that CBRE and Insignia were able to arrange a deal which suits both our needs."

The Estee Lauder Companies Inc. is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.