11 Madison Avenue (NYLJ/Rick Kopstein)
Sony Corporation of America (SCA) and Credit Suisse Group have signed new agreements at 11 Madison Ave., between 24th and 25th streets, in the Flatiron District.
SCA has signed a 15-year lease for 525,000 square feet with The Sapir Organization and CIM Group at the 28-story, 2.2-million-square foot building, called Eleven Madison Ave. SCA, a subsidiary of Tokyo-based Sony Corporation, will move its U.S. headquarters from 550 Madison Ave. and from 555 Madison Ave. in early 2016.
Meanwhile, Credit Suisse, in collaboration with Sapir, plans to restack its floors at 11 Madison Ave. to accommodate the international entertainment group. Credit Suisse, a global investment banking group that has been an anchor tenant since 1997, also has a new lease for 20 years.
“Our new home puts us right where we belong: among the city’s leading cutting-edge technology and entertainment companies,” Nicole Seligman, president of SCA, and executive vice president and general counsel of the Sony Corporation, said in a statement. The neighborhood is “dynamic and desirable” and the property is a “magnificent building,” she said.
In addition to SCA, Sony Music Entertainment, Sony/ATV Music Publishing, Sony Pictures Entertainment and Sony DADC, a disc and digital solution provider, will also be headquartered at 11 Madison Ave.
Marc Hurel and Jeffrey Steiner, partners at DLA Piper in New York, and Geoff Howell, a partner in Boston, represented the owners.
Mark Khalil, executive vice president and general counsel of SCA, was in-house counsel. In addition, Benjamin F. Needell and Marco Caffuzzi, partners at Skadden, Arps, Slate, Meagher & Flom, and Christy McElhaney, counsel, represented SCA in the preparation of the lease documents.
Neil Rock, a partner at Skadden, along with Russell Wohl, counsel, and associate Ryan Knutson represented Credit Suisse.
SCA declined to comment on its overall current square footage. Sony Corp., a previous owner of 550 Madison Ave., sold the 825,000-square-foot property in 2013 for $1.1 billion to a consortium led by The Chetrit Group. (NYLJ, Mar. 20, 2013).
The asking rate at 11 Madison Ave. is reportedly in the $70s per square foot. In the mid-1990′s the tower underwent a renovation of about $400 million, making it a “class-A, state-of-the-art world headquarters building,” according to Sapir’s website.
Credit Suisse currently occupies most of the building, with the exception of floors 12, 14, and 16 through 18, or more than 2.7 million square feet. After 2015, Credit Suisse will no longer occupy floors above the 11th floor. As a result of the restacking, it will be reducing its footprint by about 550,000 square feet, said a spokeswoman for Credit Suisse.
Some demolition has already begun on the lower portion of the building and renovation will continue through 2017, she added.
SCA and its affiliates will fill the top portion of the building, the 19th to 28th floors, and will have access to rooftop space overlooking Madison Square Park. There will also be a private entrance and a separate address, 25 Madison Ave. The Sony Store will occupy ground-floor retail space adjacent to the entrance, according to Sony’s news release.
“We are pleased to have Sony join our other long-standing anchor tenant, Credit Suisse, and to have two world-class corporations that have made long-term commitments to the building,” Alex Sapir, president of the Sapir Organization, said in a statement.
Sapir is a group of privately held companies that own and manage approximately 6 million square feet of prime commercial and residential space.
Los Angeles-based CIM, a leading real estate and infrastructure investment firm, has more than $13.1 billion in assets under its management. In addition to New York, CIM has offices in Oakland, Calif., and Bethesda, Md.
Anthony Orso, CEO and cofounder of Cantor Commercial Real Estate Company (CCRE), and Barry Gosin, CEO at Newmark Grubb Knight Frank, acted as advisors to Sapir/CIM.
A team from CBRE handled the leases for Sapir/CIM: Howard Fiddle, vice chairman, agency group; Bradley Gerla, executive vice president, brokerages services; Zachary Freeman, senior vice president, consulting services strategic agency group; and Zakery Snider, senior associate.
CBRE’s Greg Tosko, vice chairman, consulting services; Lauren Crowley Corrinet, vice president; Brendan Herlihy, senior financial analyst; and Mary Ann Tighe, CEO, acted on behalf of Sony.
CBRE’s Craig Reicher, vice chairman New York tri-state region, led a team on behalf of Credit Suisse.
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