Chadbourne & Parke has found a new location for its New York City headquarters at 1301 Avenue of the Americas.
1301 Avenue of the Americas
All Photos: Rick Kopstein/NYLJ
Chadbourne’s opportunity to lease more than 200,000 square feet under a 20-year lease came with the demise of Dewey & LeBoeuf, which went bankrupt last spring (NYLJ, May 29, Aug. 8). The defunct law firm was headquartered at 1301 Avenue of the Americas, where its office covered about 474,000-square feet.
Chadbourne will be leaving nearby 30 Rockefeller Plaza, where it has been a tenant for more than four decades and reportedly leased less than 300,000 square feet. In early 2011, Deloitte LLP signed a lease for 430,000 square feet at 30 Rock, including the law firm’s space, which at the time the firm was deciding on a lease renewal, according to the New York Observer. The law firm’s lease expires in spring 2014.
The new lease at 1301 Avenue of the Americas was signed with Paramount Group Inc., the owner of the 45-story, more than 1.7-million-square-feet class-A tower, between 52nd and 53rd streets. Paramount did not respond to a request for comment.
Chadbourne & Parke was represented in-house by a team led by partner Richard Sonkin. In addition, Richard Kalikow, a partner at Diamond McCarthy, and associate Stephanie Sklar represented the firm.
Bernard Marasco, a director of leasing at Paramount Group and in-house counsel for leasing and management functions, internally represented the landlord.
The deal ends media speculations about whether One World Trade Center, 11 Times Square, 740 Eighth Ave. or 250 West 55th St. would end up housing Chadbourne’s headquarters.
“We are delighted to have closed this complex transaction” at 1301 Avenue of the Americas and have the firm’s headquarters positioned in “a premier office building in a prime location,” Andrew Giaccia, Chadbourne’s managing partner, said in a statement.
The law firm will begin as soon as possible to relocate some of its operations to the new space but expects the entire headquarters to be moved after renovations are completed sometime in 2014.
The rates at 30 Rock are reportedly in the $70s per square foot, whereas the Avenue of the Americas rate is more than $82 per square foot. There has been unconfirmed talk that Paramount will be contributing to the renovation of the space, estimated to be about $70 per square foot, according to The Wall Street Journal.
Chadbourne will occupy the 22nd floor to 27th floor plus concourse and sub-concourse space at 1301 Avenue of the Americas. The 20-year lease also includes two five-year renewal and expansion options on additional floors.
With the renovation and design project under way, Chadbourne is already negotiating for additional space, a firm spokesman said. He said the new space will be “more efficient structurally” and “in line with a trend of law firms having more modern designed space.”
“We intend to design and build an office for the future, leveraging some of the key drivers for our clients and our lawyers—efficiency, flexibility and technology,” said Giaccia. An estimated cost for the project has not been disclosed but the space will be designed by Gensler, an internationally known architectural and design firm.
Chadbourne was founded in 1902 in New York City by Thomas Chadbourne Jr. Its largest office is in Manhattan, which houses 200 of the firm’s 400 attorneys. The firm is best known for its renewable energy/project finance, corporate/mergers and acquisitions, litigation and bankruptcy practices, and for its focus on emerging markets.
In addition to its headquarters, Chadbourne has offices in Washington, D.C., Los Angeles and Mexico City, along with nine other international offices, including London, Moscow, Beijing and it newest office in Istanbul.
Moshe Sukenik, an executive vice president and principal at Newmark Grubb Knight Frank, along with colleagues Chris Mongeluzo, an executive managing director, and Brian Cohen, an associated director, served the law firm.
Ted Koltis, a senior vice president of leasing at Paramount Group, and Heather Khan, an assistant vice president of leasing, internally handled the lease.
Paramount non-attorney associate Andrea Fallon also assisted Marasco on the deal.
Remaining downtown, the New York City office of San Francisco-based Sedgwick LLP will be located at Two World Financial Center, 225 Liberty St., as of Oct. 15. The international trial firm has signed a 12-year lease for 43,374 square feet, the entire 28th floor, at 2WFC.
The firm will be leaving 125 Broad St., where it has been a tenant since 1999, leasing about the same amount of space on the 39th floor from Sullivan & Cromwell.
The 44-story, domed-roof 2WFC tower, with 2.3 million square feet, is one of four buildings comprising the World Financial Center complex owned by Brookfield Office Properties.
“Our move to Two World Financial Center demonstrates our long-term commitment to serving the needs of our clients in the New York region and allows us to participate in the revitalization of Lower Manhattan,” Michael Tanenbaum, a partner and chair of Sedgwick, whose office is in Newark, N.J., said in a statement. “It’s a win-win.”
Two World Financial Center
Michael Kinney, a partner at Loeb & Loeb, and associate Nichole Cortese, represented the landlord.
Gary Sheppard, a Sedgwick partner in San Francisco, internally represented the firm.
The 100-percent leased 2WFC, with waterfront esplanade and harbor views of the Hudson River, has a private and public underground parking facility with building amenities that include a full-service cafeteria and fitness center.
Brookfield declined to discuss the rates at 2WFC. The asking rates for this section of downtown Manhattan range from an average of about $42 per square foot to $51 for Class-A space.
Although Sedgwick has about the same square footage at the new location, the footprint has “substantially improved,” Tanenbaum said. The firm has taken advantage of “technological advances” thus eliminating space that was devoted to its law library, hard copy files and servers, he said.
The firm has a team of 383 legal professionals across the country, including 116 attorneys in San Francisco and 45 attorneys in New York City. It provides trial, appellate, litigation management, counseling, risk management and transactional legal services for corporate and insurance clients worldwide.
Sedgwick was founded in 1933 in San Francisco and opened its New York City office in 1985. The firm has 13 offices in the United States as well as in Bermuda, London and Paris. Last year it opened new offices in Seattle and Washington, D.C.
David Goldstein, an executive vice president and director at Studley Inc., and colleague Greg Taubin, an executive managing director, handled the lease for Sedgwick. Kevin Brennan, a managing director at Jones Lang LaSalle in San Francisco, also served the law firm.
David Cheikin and Sarah Pontius, vice presidents of leasing at Brookfield Office Properties, acted on behalf of the landlord on the lease.
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