The StepStone Group LP, a global private markets firm, hase leased the entire 17th floor at the Lipstick Building.
The firm has signed a 10-year lease for the 19,270 s/f renovated space.
The signing of the new lease brings the occupancy of the 34-story building to more than 97 percent.
Current ownership, Argentina-based real estate giant IRSA and Marciano Investment Group, has repositioned 885 Third Avenue, which is now identified as the name building for international law firm Latham & Watkins LLP, and Manhattan address for global equity funds, law firms and finance-based companies. Latham & Watkins recently took a portion of the 25th floor and will occupy an estimated 400,000 s/f.
“We are proud to add the StepStone Group to a most auspicious tenant roster,” points out Daniel Elsztain, Director of IRSA.
“Our firms purchased this asset because it was an internationally-recognized building with a distinct design. But there were challenges to overcome, which we accomplished in just over four years.”
In addition to a multi-million dollar capital improvements program, IRSA initiated cultural events and revolving exhibitions in the south lobby.
Working with co-asset management firm Herald Square Properties, they have highlighted the architectural pedigree of the post-modern trophy building with such contemporary elements as Gensler-designed pre-built offices for new tenants and a stunning lobby exhibition space created by Moed de Armas & Shannon.
A new restaurant, Crimson & Rye, owned by celebrity chef Charlie Palmer, opened last year in the northern lobby. It joins top Zagat-rated Wolfgang’s Steakhouse in the adjacent standalone section.
Other international tenants at the building include Goulston & Storrs, Corpbanca, Burford Group and German-based media firm GWFF.
Representing the landlord for the transaction were Newmark Grubb Knight Frank’s Erik Harris, Scott Klau, and Mark Weiss.
Representing the tenant were CBRE’s Silvio Petriello and Nick Weld.
StepStone Group will be relocating from 505 Fifth Avenue and is expected to take possession of the 17th floor in summer 2015.
To date, there is only one full-floor availability at The Lipstick Building, comprising the 28th floor with 13,200 s/f.