By Konrad Putzier
TF Cornerstone’s 387 Park Avenue South has continued its recent string of leasing successes, signing residential brokerage Citi Habitats to a 20,000 s/f, 10-year lease.
The deal brings the leasing total at the 12-story NoMad office building to over 80,000 s/f in the past 90 days. NGKF’s Matt Leon is the exclusive leasing agent for the 215,000 s/f property, working along with Chip Sealy at TF Cornerstone. Leon was unavailable for comment at press time. Asking rents for office space in the building range from the $70s to over $80 per s/f.
TF Cornerstone bought 387 Park South for $67 million in 2005 and moved its own 50,000 s/f headquarters there in 2011. In order to clear the property for renovation, they allowed the rest of the tenants’ leases to expire. Following an extensive renovation, marketing on the vacant office space officially kicked off last May in advance of its availability earlier this year. Upgrades have included new lobbies on both Park Avenue South and 27th Street, new elevators, mechanicals upgrades throughout, a new multi-story full glass façade now underway and a 1,700 s/f glass skybox conference facility.
TF Cornerstone and NGKF had initially marketed the top four floors (a total of 80,000 s/f) to a single tenant, but later changed track based on robust 20-40,000 s/f activity and began leasing out the space in smaller blocks. Earlier this year, online ad firm Criteo signed on for over 40,000 s/f on the entire 11th and 12th floors. Citi Habitats’ new office will be on the entire 4th floor with the 5th floor leased late last year to Regus.
The building’s last remaining block of up to 50,000 contiguous s/f on floors 8, 9 and 10 is available now, as well as the 20,000 s/f entire 2nd floor which has floor-to-ceiling windows looking out onto the city. The retail space is also being marketed now.
The blocks surrounding Madison Square Park have become one of the city’s most popular office destinations in recent years, attracting high-profile tenants such as Buzzfeed and Business Insider.
Gary Malin, president of Citi Habitats, explained that the lease for the firm’s corporate flagship office at 250 Park Avenue South was set to expire, prompting a search “for alternatives.”
“The new space at 387 Park Ave South was a perfect fit because it allowed us to move all of our people from separate floors, to one large 20,000 s/f space, on a single floor,” said Malin. “Not only is this more efficient, it will making working together easier. The space will have all the latest and greatest in design and technology that reflects how real estate professionals work in the 21st century. ”
Malin said the move marks the final phase of Citi Habitats’ office revitalization plan. Upon completion, all agents and staff at Citi Habitats will work from among the most modern and well-designed office spaces in the city, he added.