26 North Signs 84,000-Square-Foot Lease at LeFrak’s 40 West 57th Street, Adding to Midtown Leasing Momentum

26 North Signs 84,000-Square-Foot Lease at LeFrak’s 40 West 57th Street, Adding to Midtown Leasing Momentum

Alternative investment manager CBRE-brokered tenant 26 North has signed an 84,000-square-foot lease to relocate its New York offices to LeFrak’s 36-story tower at 40 West 57th Street, leaving its current space at 600 Madison Avenue.

The agreement runs 11 and a half years and will give the investment firm four full floors in the Midtown building. Asking rent terms were not disclosed, though Colliers’ most recent monthly snapshot pegged average asking rents for Midtown office space at $84.68 per square foot as of August.

26 North is not the only incoming tenant at the property. Mack Real Estate Group, a New York-based real estate investment, development and lending firm, has committed to 20,750 square feet on a portion of the 17th floor — space previously built out for A&E Real Estate, which is shifting to another floor in the same building. Mack is relocating from 60 Columbus Circle; the rent and lease term for its deal were not disclosed. Move-in timing for both tenants has not been announced.

LeFrak was represented in-house by Adam Silfen, Meredith Jackness and Stephanie Allan, alongside a CBRE team including Howard Fiddle, Evan Fiddle, Ben Joseph, Arkady Smolyansky and Sam Seiler. Newmark’s Jared Horowitz and Howard Hersch advised 26 North, while Brian Waterman and David Waterman of Newmark represented Mack. Newmark declined to comment, and neither tenant immediately responded to requests for comment.

“Combined with LeFrak’s stable ownership, a strategic location in one of the city’s most desirable business districts, and ongoing capital improvements, 40 West 57th Street continues to attract premier tenants seeking a best-in-class office experience,” CBRE’s Howard Fiddle said in a statement.

The leasing activity comes as CBRE Group — the commercial real estate services firm whose brokerage team represented the landlord — saw shares close at $142.35, down 3.95% from the prior close of $148.20, valuing the company at roughly $42.8 billion. The firm operates across advisory services, building operations, project management and real estate investments in the U.S., U.K. and internationally.

40 West 57th Street is a Class A office property spanning more than 160,000 square feet, with amenities including a lounge, a café and conference facilities.

What to watch

• Move-in timing for 26 North and Mack Real Estate Group, which has not been disclosed
• Additional leasing announcements at 40 West 57th Street as capital improvements continue
• Colliers’ upcoming monthly snapshots for Midtown asking-rent trends
• CBRE’s next quarterly earnings report for brokerage activity in the New York office market

Source: original release