Shearman And Sterling

News January 31, 2014

Four Lease Transactions for Solow Realty Yield Top Rents in Prestigious NYC Building

During 2013, Shearman & Sterling represented an affiliate of Solow Realty & Development Company in connection with four lease transactions at 9 West 57th Street, often touted as one of the most prestigious buildings in Manhattan. The transactions included leases with three new tenants and a significant extension of a three-floor tenant. The average rents fetched in these transactions are reported to be the highest obtained in office lease transactions in Manhattan since the economic downturn and will generate aggregate gross rents in excess of $400,000,000.

The new leases are with the global investment firm Tiger Global Management (covering the entire 35th floor of the building consisting of 31,900 rentable square feet), the investment firm Ruane, Cunniff & Goldfarb (covering 26,920 rentable square feet on the building's top floor), and the investment advisory firm Jordan/Zalaznick Advisers (covering 11,900 rentable square feet on a floor in the top half of the building).

The transactions also included a significant lease extension with Och-Ziff Capital Management Group, one of the building's largest tenants and one of the largest institutional alternative asset managers in the world. Och-Ziff extended its commitment for three full floors constituting 95,200 rentable square feet for an additional 10 1/2 years with the term ending approximately 16 1/2 years from now.

The Team