The Feil Organization deliberately chose a multi-tenant floor strategy over the last 12 months to accommodate new and existing tenants at 7 Penn Plaza, announced Jeffrey Management Corp., the building’s leasing and managing Agent. Asking rents were $53 to $55 per square foot.
“At a time when many building owners prefer tenants to take full floors, The Feil Organization opted to diversify our mix while helping several of our tenants expand within the building,” says David Turino, Director of Commercial Leasing of The Feil Organization.
“Taking advantage of a strong leasing market in 2014, we found ourselves with more tenants then we could accommodate, varying from a large tenant interested in three full floors to many partial floor users. Ownership opted to pursue the smaller tenants in order to accommodate the growth of our existing tenant base and to diversify our risk. By carefully planning and leasing to both new and current users over the past 12 months, we have brought 7 Penn Plaza’s availability rate from 83 to 95 percent leased. Best of all, it’s good for our tenants and prospective tenants to know they can grow within our building.”
Most recently, TranSystems signed for 6,800 s/f on the seventh floor of the 18-level, 368,000 s/f building. It is taking space being vacated by SourceOne, which is relocating to 11,000 square feet on the fourth floor. Also relocating within the building are RCG Longview and Estrich & Co. from 15,000 square feet on the fifth floor to 17,000 square feet on the 14th floor.
The 12th floor was divided between two new tenants. Guilford Publications has signed for 11,500 square feet on the northside of the 12th floor and the National Hemophilia Foundation, will occupy 11,000 square feet on the south side of the floor.
Finally, a new tenant, the Retail, Wholesale and Department Store Union (RWDSU), has signed a lease for a total of 23,000 s/f on two floors of the building. They will backfill RCG Longview and Estrich & Co.’s 15,000-square-foot former fifth floor location, and 7,500 square feet on the 14th floor.
All tenants are expected to be open by summer. Turino represented Feil in all transactions. Guildford was represented by Michael Beyda of Benchmark Properties. Eric Thomas of Cresa New York represented the National Hemophilia Foundation. The RWDSU was represented by Brian Gell and Laurence Briody, CBRE, while CBRE’s Joseph Mangiacotti represented TranSystems. Existing tenants, RCG Longview/Estrich & Co., and SourceOne did not utilize outside brokers.