The deal is the largest lease transaction by a law firm in Manhattan in 2012 and one of the largest leases in the Manhattan market this year.
“We intend to design and build an office for the future, leveraging some of the key drivers for our clients and our lawyers — efficiency, flexibility and technology. We will create a state-of-the-art workspace for our clients, our lawyers and our staff,” said Chadbourne managing partner Andrew Giaccia.
The firm will begin moving operations to its new location immediately and will complete its move once the demolition, redesign and build-out of its new offices are finished.
The 20-year lease includes two five-year options for renewal and expansion options on additional floors to allow for continued growth.
The average rent in midtown is currently $73.67, according to Cushman and Wakefield. The Wall Street Journal reported that Chadbourne will pay $82 psf, but sources have told REW that the deal was sweetened with substantial concessions.
Ted Koltis and Heather Kahn acted on behalf of Paramount Group, Inc. Moshe Sukenik, Chris Mongeluzo and Brian Cohen of Newmark Grubb Knight Frank represented Chadbourne & Parke.
“The last five years has seen more changes in law firm space design than the preceding two decades combined,” said Sukenik, an executive vice president at NGKF.
“Starting with a clean slate and designing space from scratch, Chadbourne has the opportunity to recreate its offices while still achieving tremendous efficiencies.”
Chadbourne has led its national and international practice from its principal office in New York City since 1902, and the New York office is the largest of its 12 offices around the world.
The firm was close to moving to One World Trade Center but backed out when parnters reportedly could not agree on a move away from its long-time neighborhood.
Chadbourne & Parke is relocating from 300,000 square feet at 30 Rockefeller Center, space being taken over by accounting firm Deloitte.
The firm’s new Sixth Avenue space will be designed by Gensler.
Gensler is one of the world’s leading architectural and design firms. Gensler has created innovative workplaces for 62 of the Global 100 companies and many of the most prominent U.S. and international law firms.
The Chadbourne team that conducted the search for a new headquarters location and negotiated the lease was led by partner Richard Sonkin, head of the firm’s Real Estate Committee.
