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Asset manager leases 137,660 s/f at Seagram Building

Blue Owl Capital, a global alternative asset manager with more than $119 billion in assets under management, has leased 137,660 square feet of office space at RFR’s Seagram Building located at 375 Park Avenue.  

The transaction pushes Seagram’s leasing tally over 375,000 square feet for 2022 year-to-date, with the iconic building now approaching full occupancy.  

Driving Seagram’s strong leasing performance is Seagram Playground, a first-of-its-kind amenity in the New York City office market created through a $25 million investment by RFR.  Seagram Playground has boosted the building’s appeal to blue-chip financial tenants seeking their next-generation office location, with rents at the building often exceeding $200 per square foot.

“I am committed to ensure the Seagram Building remains the best and most celebrated office building in the world – delivering new oxygen to the workplace by redefining the line between work and amenity,” said Aby Rosen, Co-Founder and Principal of RFR.

Marc Lipschultz, Co-Founder and Co-President of Blue Owl Capital, stated: “Blue Owl’s early success is in no small part fueled by the hard work and myriad contributions of our many dedicated colleagues.  Creating a first class office environment where our people can collaborate is integral to Blue Owl’s corporate culture and we are delighted that we were able to partner with Aby and the rest of the RFR team to help fuel our continued expansion.”  

Investment and asset management firms make up the bulk of the 375,000 square feet of leasing in 2022, the majority of which closed within the past 90 days.  Highlights include:

Blue Owl Capital, a global alternative asset manager with more than $119 billion in assets under management as of June 30, 2022, leased 137,660 square feet.

Teachers Insurance and Annuity Association of America (TIAA) leased 52,124 square feet to be used for Churchill Asset Management, a leading capital provider for private equity owned, middle market companies.  

Windrose Health Investors, a healthcare private equity firm, leased 16,956 square feet.
Clayton, Dubilier & Rice, a private equity firm, increased its footprint to 69,385 square feet in a renewal and expansion deal.

EnTrust Capital, an asset management and advisory firm with $19.4 billion in assets under management, completed a long-term lease renewal for 25,827 square feet.
Sound Point Capital Management, a $30 billion asset management firm with a particular expertise in credit strategies, completed a renewal and expansion deal for 31,000 square feet.

“We have created a new benchmark for the high-end office market.  Seagram Playground makes the best better, and continues to attract and retain tenants in this iconic office tower,” said AJ Camhi, RFR’s Executive Vice President and Director of Leasing.  “The flight-to-quality in New York office is very real, and the success we’ve had at Seagram is further evidence that Seagram remains the City’s premier office property.”

Seagram Playground opened last month.  The 34,000-square-foot, multi-level complex is unrivalled in New York, and represents the future of social and professional well-being through its three primary elements: 

Fitness, with a sports court for basketball, pickleball, floor hockey, volleyball and more; rock climbing wall; HIIT (high impact interval training) area; spin studio; strength training area; and cardiovascular exercise area. Wellness, with a pilates fitness area; stretching area; core strengthening area; and locker rooms with showers. Social collaboration, with a townhall featuring bleacher-style seating to accommodate 240 people; modern 40-seat executive boardroom; flex room with dynamic seating configurations for symposiums, training, meetings and more; multipurpose room for music, art, wine tastings, and more; lounge area; and private phone booths.

Access to the Seagram Playground is provided to building tenants for their exclusive use, and complements the Seagram Building’s robust longstanding amenity offering which include the unmatched restaurant and event spaces in The Grill, The Pool, and the Lobster Club; in-building parking for motor vehicles and bicycles with direct elevator access to the lobby; and installation of contemporary fine art in common spaces on a rotating basis.

Additionally, the Terrace Lounge on the 11th floor is accessible to select tenant decision makers via private elevator. Staffed by a coordinator, it boasts a 5,000-square-foot outdoor terrace with a variety of seating options; a library with curated content and periodicals; and a large-scale media screen for streaming content or presentations.

Brokers:  Blue Owl Capital was represented by Mark Weiss of Cushman & Wakefield.  Churchill/TIAA was represented by Scott Vinett of JLL and Chris Joyner of Fischer.  Landlord agents for the Blue Owl and Churchill/TIAA deals were Peter Riguardi, PaulGlickman, Cynthia Wasserberger and Ben Bass of JLL, and AJ Camhi and Paul Milunec of RFR Realty.  WindRose Health Investors was represented by Mary Ann Tighe and Alex D’Amario of CBRE.  Landlord agents for the WindRose transaction were AJ Camhi and Paul Milunec of RFR Realty.

“The continued leasing momentum at 375 Park Ave. is testament to ownership’s vision for a modern, healthy workplace that is attractive to major occupiers as they embrace the return to work,” said Glickman. “We look forward to achieving full occupancy as tenants continue to be attracted to the property’s best-in-class amenities and central location.”

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