The 362,197 Square Foot Transaction Marks Successful Completion of Leasing Campaign To Fill 12-Floor Block of Space at the Trophy, 40-Story, 850,000 SF Tower
Sage Realty Corporation, the leasing and management division of the William Kaufman Organization (WKO), announced today that WeWork has finalized a long-term, 362,197 square-foot lease at 437 Madison Avenue, a trophy 40-story, 850,000 square-foot office tower in the heart of the Plaza District.
With the new agreement, Sage Realty has successfully leased a 12-floor block of space 15 months ahead of the lease expiration with an existing long-term tenant. Knowing that the entirety of the building’s leases would roll between 2013 and 2020, Sage Realty methodically worked to reposition the property’s office space. As a result, the building is now 98% occupied.
The WeWork block of space, which spans floors 2-12 and a portion of the 14th floor, becomes available on January 1st, 2021. Along with a private, dedicated entrance on the 50th Street side of the property, WeWork will also have its own outdoor terrace located on the 15th floor with access through a private staircase. The transaction will allow WeWork to occupy the base of the building, creating its own building within a building.
WeWork’s long-term commitment to 437 Madison Avenue is the culmination of Sage’s vision to transform the property into a leading destination for modern office users. As part of its $60 million capital improvement plan, which concluded in 2015, Sage Realty commissioned architectural firm Fogarty Finger and landscape architect MPFP to renovate and re-imagine the mid-century tower into a contemporary office environment, which includes a re-designed lobby and arcade area, a new plaza, renovated elevators, upgraded building systems and an outdoor terrace with spectacular views of St. Patrick’s Cathedral.
WeWork’s clients will join a number of prestigious blue-chip tenants at 437 Madison Avenue, including reinsurer Munich American Reassurance Company; financial services firm Citizens Bank; philanthropic organization Carnegie Corporation of New York; national law firm Wiggin and Dana LLP; global strategic communications firm Kekst CNC; and specialty finance company Medallion Funding Corp.
Upon closing the transaction, Jonathan Kaufman Iger, CEO of Sage Realty Corporation, commented: “After having a strong relationship with one long-term tenant for many years, we look forward to starting a new one with WeWork to bring in tenants of the same caliber. In this environment where large blocks of space can sit on the market for months, if not years, our talented leasing team has brought in several interested parties and now successfully negotiated a deal 15 months before vacancy. We look forward to WeWork establishing an offering that will appeal to their enterprise members.”
Michael Lenchner, Vice President and Director of Leasing at Sage Realty Corporation, added: “We are excited to welcome WeWork to 437 Madison Avenue. This transaction demonstrates how well the repositioning at the building has been received and the level of investment we have committed to this property. It has been a pleasure working with the WeWork team and the brokers to finalize the transaction. We will continue creating value for our tenants by offering physical amenities and exceptional services at the building.”
According to Lenchner, only two high-end pre-built office spaces remain available for lease in the building. They include a 5,144 square-foot space on the 33rd floor, and a 10,191 square-foot space on the 39th floor. Additionally, a fully wired and furnished space on the 19th floor is also available. The 4,227 square-foot plug & play unit is perfect for a law firm or user in need of immediate space with multiple offices, two conference rooms, and open area.
Sage is also preparing to market a ground-level restaurant space located on the 49th Street of the building with outdoor seating, which Lenchner notes would be ideal for a high-end restaurant or a fast-causal retail concept. Reservation priority will be given to 437 Madison tenants, including catering services and event opportunities on the sky lounge. The company also plans to bring a dynamic amenity space to the building that would have food & beverage supported by the restaurant.
437 Madison Avenue, which occupies the entire blockfront between 49th and 50th Streets, is owned by WKO in partnership with the Travelers Companies, Inc. For more information about 437 Madison Avenue, please visit the Sage Realty website at http://www.sagerealty.com/.
Michael Lenchner along with a Jones Lang LaSalle leasing team of Frank Doyle, David Kleiner, Cynthia Wasserberger, Hayley Shoener and Harlan Webster, represented building ownership in the transaction. Peter Riguardi and Howard Hersch of Jones Lang LaSalle represented WeWork.
About Sage Realty Corporation
Sage Realty Corporation is the leasing and management division of the William Kaufman Organization (WKO). Founded in 1938, Sage Realty, together with WKO, currently manages, leases and has successfully developed nearly three million square feet of class A commercial property in New York City. The company’s services include trust and asset management, facility management, agency leasing and tenant representation. For more information, visit http://www.sagerealty.com/
