CBRE signs 300,000 s/f, puckers at Lipstick bldg.
Known as the Lipstick Building for its striking oval tiered shape, 885 Third has been home to Latham & Watkins since the 34-story tower was erected in 1986, and has a Latham & Watkins desk in its lobby as well as an elevator bank dedicated exclusively to servicing the firm's floors.
Consistently expanding throughout its tenure in the building, Latham & Watkins currently occupies 240,000 s/ f, but needed additional space as well future expansion rights as conditions for renewing its lease, which runs out in February of 2006.
New owners of the Lipstick Building, Tishman Speyer considered it a priority to retain the law firm, which after the recent expansion, will now occupy 340,000 s/f, over half of the building's roughly 620,000 s/f. To accommodate the firm's immediate need for the 80,000 s/f addition, Tishman Speyer reportedly allowed law firm Greenburg Traurig, which occupies four floors in the building, to exit early on its lease.
That law firm will consolidate operations at 200 Park Avenue.
"Latham & Watkins was ready to consider other buildings but certainly wanted to stay if their expansion needs could be met," said CBRE's Scott Gamber who repped L&W in the deal.
"Latham & Watkins is obviously a great tenant but Tishman Speyer is a great owner, they bring a higher level of management expertise to that building so I think both parties come away definitely satisfied with this deal."
Sources close to the deal described the expansion rights as sizable and the key factor in prompting L&W to sign a long-term 15-year lease.
Due to its sheer size, L&W was also able to negotiate rents slightly less than the $67 per s/f asking price.
For CBRE, the Latham & Watkins renewal and expansion wasn't the only big holiday deal. The firm just brokered a massive and surprising 300,000 new lease for Lehman Bros. at Equity Office's 1301 Sixth Avenue.
Top CBRE broker Robert Alexander and Michael Geoghegan handled that deal.
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|Title Annotation:||Latham & Watkins|
|Publication:||Real Estate Weekly|
|Date:||Dec 29, 2004|
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