The former headquarters of the L’Oreal cosmetiscs company is set to re-enter the market following a $25 million makeover.
MetLife, one of the largest life insurance companies in the world, and Beacon Capital Partners, an office investor and manager, announced that 360,000 s/f of Class A office space at 575 Fifth Avenue will become available in September.
For more than 30 years, the property served as the headquarters for L’Oreal, which is moving its headquarters to the Hudson Yards development where it has leased over 400,000 s/f at 10 Hudson.
Beacon bought a 50 percent share of the building last year and secured $321 million in financing for the acquistion. MetLife has owned the property since 2005.
The building is now nearing completion of a $25 million capital improvement program, which includes a newly designed lobby featuring a variety of natural stone materials and finishes.
A customized digital media program wraps the walls and columns throughout the space, creating a modern digital experience. Improvements include a new, visually prominent building canopy and entrance, new lighting, enhanced internet and wireless connectivity throughout the building, and new destination-dispatch elevator service.
Tenants have access to a new 6,000 s/f conference center and tenant lounge. The building also features a three-story, light-filled public atrium with access to retail and restaurants.
Deals have already been signed within the building by Barneys New York for 72,000 s/f, and Westpac Banking Corporation and Northwood Investors, each for 15,000 s/f.
Beacon and MetLife have been partners for many years, and 575 Fifth Avenue is the second building they have co-owned in New York City.
Last year, they successfully repositioned 85 Broad Street, the former Goldman Sachs headquarters, into a destination for both corporate and creative tenants, leasing over 430,000 s/f to companies such as Berkshire Hathaway, Banco Popular, VOX Media and WeWork.
“Capitalizing on our success at 85 Broad Street, we are thrilled to once again partner with MetLife on 575 Fifth Avenue,” said Chris Gulden, senior vice president, Beacon Capital Partners. “575 Fifth Avenue is a hidden gem in the center of Manhattan. We plan to make it one of the premier office destinations in Midtown Manhattan.”
“575 Fifth Avenue is a spectacular property, with unrivaled location, views and amenities,” said Donald Svoboda, Director at MetLife.
“We are proud of the transformation made possible through our partnership with Beacon Capital Partners.”
CBRE will serve as the exclusive broker. CBRE’s Howard Fiddle, vice chairman; Gregg Rothkin, senior vice president; Keith Caggiano, senior vice president; Arkady Smolyansky, vice president; Brad Auerbach, associate and Dave Caperna, senior financial analyst, represent the building owners.
“We are thrilled to represent MetLife and Beacon Capital Partners at 575 Fifth Avenue, one of the most coveted premier assets in all of Manhattan,” said Rothkin.
“575 Fifth Avenue has been fully occupied and off the radar for so long that most brokers have never been in the building, much less know about the flexible floor plate, the exceptional light and panoramic views of Central Park, and the Midtown skyline.”
Located in Midtown at the corner of East 47th Street and Fifth Avenue, the 40-story building is near some of the city’s most important transportation hubs — Grand Central, Rockefeller Center and Bryant Park. The skyscraper is nestled on what American Planning Association has called “one of the greatest streets to visit in all of America,” referring to the sprawling and luxurious Fifth Avenue.
The Energy Star-rated property was winner of the 2012 International BOMA Outstanding Building of the Year award. The building’s 40 floors range in size from 23,000 s/f in the base to 15,000 s/f in the mid-rise and tower.