Newmark to lease 186,000 s/f in new trophy building, 731 Lex.

Newmark & Company has been appointed exclusive leasing agent for New York's newest trophy building currently nearing completion at 731 Lexington Avenue.

Two years ago, Newmark vice chair and CEO, Barry Gosin, arranged a 700,000 s/f lease on behalf of international business news organization, Bloomberg LP, who will anchor the tenant roster at the building owned by Vornado Realty.

Now the company has been retained to lease the remaining 186,000 s/f available at the property, encompassing the entire 21st-28th floors (which measure 22,000 s/f/) and part of the 29th floor.

"It's going to be among the best two or three buildings in New York," said Jimmy Kuhn, president of Newmark, who will be leading the assignment with executive vice president and principal, Brian Waterman.

"It is on par with 667 Madison or 712 Fifth and will appeal to high-end financial, legal and entertainment oriented tenants that want to be in the best building in New York."

Built on the site of the former Alexander's department store, the space will be ready for tenants' occupancy in May 2004.

With Bloomberg said to be paying around $70 per s/ f, and with the neighboring GM Building, 677 Madison and 712 Fifth all commanding between $70 and $100 per s/f, Newmark can expect to match or even surpass these figures.

"$80 per s/f is not unreasonable for a building of this caliber," said Kuhn, who added that, even before marketing begins in earnest, the company is getting unsolicited interest from some very prestigious tenants.

"We hope to compete [with those figures]," added Kuhn. "This is one of best buildings in the city and it should command rents accordingly."

Hailed as the most technologically advanced commercial property ever constructed in New York City, the 1.4 million s/f, 54-story, 850ft, mixed-use tower takes up a full block between 58th and 59th streets, surrounded by Lexington Avenue and Third Avenue.

As well as the Bloomberg lease, deals have been inked for most of the ground floor retail space. Home Depot Expo is taking 83,000 s/f, H&M 26,000 and Wachovia Bank just signed on for a 5,000 s/f branch in the building, leaving 40,000 s/f of retail space, which is being handled in-house by Vornado.

The luxury condo development, called 1 Beacon Court, will comprise 105 condos entry to which will be through a great port-cochere in middle of the block between 58th and 59th street, which will be a focal piece in the architecture.

Designed by architects Cesar and Rafael Pelli, floor to ceiling glass curtain walls will give the building a spectacular profile and it will offer 24/7 AC, Direct TV and a state-of-the-art telecommunications infrastructure as well as luxury spa facilities.

Although Newmark hasn't ruled out a single tenant taking over the remaining 186,000 s/f of office space, Kuhn anticipates several separate deals. "Because of the floor size, we believe the average deal will be one to three floors each tenant."

The building has several qualities that make it attractive to the right client, according to Kuhn, who added, "In addition to being a good building, you have very solid ownership--Vornado is as good as it gets when it comes to that. Bloomberg is also a prestigious tenant and a great anchor for anyone.

"And, unquestionably, there is a flight to quality. It is so difficult to build a new office building in New York and so impossible to get a prestigious location that there aren't going to be many more buildings like 731 Lexington left.

"Vacancy in the highest end buildings is minimal and we are thrilled to death to have this prestigious assignment in today's New York market."

In May 2004, Bloomberg LP will vacate its current 186,000 s/f space at 499 Park Avenue to move to 731 Lexington.

Kuhn, meanwhile said he is looking forward to pressing ahead with the assignment. "Newmark is one of the leading firms in New York and we believe that we will do a great job leasing the remaining space."