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Towers triple-digit paydays.


Once the bounty of only the most exclusive addresses, the list of buildings that can command triple-digit rents continues to grow in Manhattan.

Investment firm, Stanfield Global Strategies has leased the 18th floor of 527 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , a 7,250 s/f space for which it will pay rents that start at $100 per s/f for the first five years of the deal and then increases to $106 per s/f for the remaining portion of the 10-year lease. Expect more deals in the building at high rents. Northstar Capital just vacated its space on floors 16 and 25 in 527 Madison Avenue to relocate 399 Park Avenue, where it just inked a 23,000 s/f deal on the 18th floor.

The move represents a significant expansion for the firm, whose space at 527 Madison totaled roughly 13,000 s/f. CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2.  broker Robert Martin Robert J. Martin (born January 13, 1947) is an American Republican Party politician, who has served as a member of the New Jersey State Senate since 1993, where he represents the 26th Legislative District.  represented Northstar in the deal. In Stanfield's deal at 527 Madison, the firm was represented by Steve Gordon
For the Libertarian Party communications director, see Stephen P. Gordon


On June 24, 1999, Steve Gordon of California rode a unicycle backward for 68 miles at Southwest Missouri State University, Springfield, Missouri, earning him the current
 of PBS PBS
 in full Public Broadcasting Service

Private, nonprofit U.S. corporation of public television stations. PBS provides its member stations, which are supported by public funds and private contributions rather than by commercials, with educational, cultural,
 Realty. EOP EOP Educational Opportunity Program (California State University)
EOP Executive Office of the President
EOP Equity Office Properties Trust (ticker)
EOP Emergency Operations Plan
EOP Earth Orientation Parameters
 personnel, who are still managing the acquired company's assets, are asking for rents that start at $105 per s/f for 527 Madison's newly available 16th floor and rates that begin at $115 per s/f for 25.

Owned by Equity Office Properties, 527 Madison may be in for further rent hikes. The Blackstone Group recently emerged triumphant from a bidding war with Vornado to acquire EOP and published reports indicate that the equity giant is likely to sell the company's entire Manhattan portfolio, which ostensibly os·ten·si·ble  
adj.
Represented or appearing as such; ostensive: His ostensible purpose was charity, but his real goal was popularity.
 would include 527 Madison. New landlords have shown a habit for quickly jacking rents in recent months. Blackstone did at 1095 Avenue of the Americas, another building that it received as part of its EOP acquisition, where its immediate hikes scuttled a deal with law firm Goodwin Proctor.

Another building in for a big rental payday is 640 Fifth Avenue. Owned by Vornado, the property has a number of floors that are scheduled to soon become available. The space is being created by the exit of Constituency Management Group, a division of the marketing and communications firm, Interpublic Group, that has four floors in the building with a lease that expires in 2008. The firm is offering its floors, 5-8, for sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. , which with a one-year term indicates that it is perhaps hoping that Vornado will terminate its lease before the scheduled expiration if an interested tenant emerges.

A recent deal with CapitalSource Finance is an example of the rates that Vornado is now seeking in the building. The financing firm just signed a deal for a 7,000 s/f space on the building's 21st floor with rents that start at $105 per s/f for the first five years. Rent rises to $110 for the remaining five years after that, a termination that coincides with the expiration of an existing 12,500 s/f the firm has on the building's 11th floor.
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Author:Geiger, Daniel
Publication:Real Estate Weekly
Date:Feb 14, 2007
Words:491
Previous Article:Tower 5 no good for bank?
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