SL Green Inks 72,500 Square-Foot Lease With Verition Group at 245 Park Avenue

Rhea-AI Summary

SL Green Realty Corp has secured a significant 72,515 square-foot, 10-year lease with Verition Group NY at 245 Park Avenue. The hedge fund will expand its space by 34,413 square feet, moving from the 35th floor to occupy the entire 14th and 15th floors. This deal brings the building's occupancy to 92.5% and increases SL Green's total office leases for the year to 3,002,971 square feet.

The property is undergoing a transformative redevelopment, including a new lobby, renovated plazas, new windows, and terracotta facade updates. New amenities will feature a wellness center, golf lounge, upscale cafe by Michelin star chef Daniel Boulud's team, and a rooftop garden with city views.

Positive

• Secured major 72,515 sq ft, 10-year lease with Verition Group
• Building occupancy increased to 92.5%
• Total office leases for the year reach 3,002,971 square feet
• Tenant expanding footprint by additional 34,413 square feet

Negative

• None.

Insights

Commercial Real Estate Analyst

This lease deal represents a significant win for SL Green in a challenging NYC office market. The 72,515 square foot expansion by Verition Group demonstrates strong demand from financial sector tenants for premium office space. The lease brings the building's occupancy to 92.5%, well above market averages.

The extensive building improvements, including the lobby renovation and premium amenities like the Michelin-star operated cafe, position 245 Park Avenue to command top-tier rents. SL Green's year-to-date leasing activity of 3 million square feet shows remarkable momentum. The 10-year commitment from Verition signals long-term confidence in both the property and Manhattan's office market recovery.

The expansion by an existing tenant validates SL Green's investment in property upgrades and amenities. This transaction type typically generates higher returns compared to new tenant leases due to reduced capital requirements and negotiation costs.

NEW YORK, Oct. 28, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that it has signed a 72,515 square foot, 10-year lease with leading hedge fund Verition Group NY, Inc., raising occupancy in the building to 92.5%. Verition will expand its footprint in the building by 34,413 square feet, relocating from the 35th floor to the entire 14th and 15th floors. This transaction increases SL Green’s office leases signed year to date to 3,002,971 square feet.

“We’re delighted to expand and extend our valued relationship with Verition Group,” said Steven Durels, Executive Vice President and Director of Leasing and Real Property at SL Green, who added, “Our transformative redevelopment plan will elevate the tenant experience and identify 245 Park Avenue as one of the premier buildings in the country’s most desirable office market.”

The redevelopment includes a spectacular new lobby, reimagined plazas, new storefronts, new windows and a jewel-like terracotta overclad of the Park Avenue podium facade. Additionally, new amenities will include a tenant-only wellness center featuring a large fitness center, country club style golf lounge and upscale cafe operated by Michelin star chef Daniel Boulud’s team. A one-of-a-kind rooftop garden will overlook the city skyline and direct access connects the building to Grand Central Terminal.

The tenant was represented by Bill Levitsky and John Cilmi, Jr. of Newmark. The landlord was represented by Cushman & Wakefield’s Bruce Mosler, Harry Blair, Tara Stacom, Ron LoRusso, Justin Royce, Pierce Hance and Will Yeatman.

About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2024, SL Green held interests in 55 buildings totaling 31.8 million square feet. This included ownership interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

Forward Looking Statement

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

Press Contact
slgreen@berlinrosen.com
SLG-LEAS

FAQ

What is the size of Verition Group's new lease at 245 Park Avenue (SLG)?

Verition Group signed a 72,515 square-foot, 10-year lease at 245 Park Avenue.

What is the current occupancy rate at SL Green's 245 Park Avenue building?

The occupancy rate at 245 Park Avenue is 92.5% following the Verition Group lease.

How many square feet of office leases has SL Green (SLG) signed year to date?

SL Green has signed 3,002,971 square feet of office leases year to date.

What renovations is SL Green planning for 245 Park Avenue?

SL Green is planning a new lobby, renovated plazas, new windows, terracotta facade updates, wellness center, golf lounge, upscale cafe, and rooftop garden.