RFR takes control of Lever House.

RFR Holding LLC, one of Manhattan's fastest growing commercial real estate owners, has taken control of the leasehold position on the Lever House, the 2 l-story office building at 390 Park Avenue occupying the entire westerly blockfront of Park Avenue from 53rd to 54th streets in Manhattan.

Concurrent to gaining control of the property, as well as its air rights, from Unilever, RFR also negotiated a leaseback of the top four floors of the building to Unilever United States, Inc. Unilever, the parent company of Lever Brothers, signed a 15-year lease for a total of 40,000 square feet. An entity controlled by Sarah Korein maintains ownership of the land beneath the building.

The acquisition by RFR ended a competitive bidding process which generated significant interest from the investment community. "We believe that there is always a market for office space of this quality, and regardless of the market's recent uncertainty, we have no plans to slow down our acquisitions of such prime properties," said Aby Rosen, a principal of RFR.

The building, which was designated as a landmark in 1982 by NYC's Landmark Preservation Commission, was built in 1952 specifically for Lever Brothers Company Unilever had net leased and occupied the entire building since then for its U.S. headquarters. The company has slowly vacated the building after announcing in September of 1997 that it would move its Lever Brothers division to Greenwich, CT. The building is now vacant except for the 40,000 square-foot occupancy by Unilever USA.

RFR plans to implement a $25 million capital improvement program to upgrade the 290,000 square-foot property, and expects to fetch rents in the $70 per square foot range. "This office tower is in one of Manhattan's choicest locations and offers a unique vertical layout with excellent light and views, making it extremely attractive for high-end, full-floor corporate space users," said Rosen.

Designed by Skidmore, Owings & Merrill, the building consists of a sheer tower rising from a large horizontal base. The tower's glass facade of windows on all four sides and floorplates of approximately 10,000 square feet allow for maximum light and exposure. The building's dramatic design make it ideal for corporations looking for a high visibility presence on Park Avenue.

"The acquisition is in keeping with our strategy of pursuing strategically located commercial properties in high-growth submarkets of Manhattan," said Rosen. "Based on the property's central location and superior design, it holds tremendous upside potential for us. We believe the building will attract corporate space users looking for high profile headquarter space."

The first floor of the property is unique, with its open courtyard and gardens. The second floor encompasses most of the site and contains an atrium overlooking the courtyard and garden. The third floor contains a dining area with full height windows and is surrounded by a large terrace and gardens. The property also contains a 63-space below-ground parking garage.

RFR also owns and manages 400 Park Avenue, the neighboring building to the Lever House.