The Real Deal New York

NY Teachers fund expands to 200K sf at 55 Water Street

Pension manager currently occupies 160K sf space at the building

December 07, 2015 12:00PM

55 Water Street in the Financial District and John Adler

55 Water Street in the Financial District and the Teachers’ Retirement System’s John Adler

The Teachers’ Retirement System of the City of New York renewed its lease at its 55 Water Street headquarters in the Financial District — and took 40,000 square feet of additional space.

The fund signed a 20-year lease for 200,000 square feet at the building. Asking rent for the space was $58 per square foot.

Ira Schuman, Marc Shapses, Oliver Petrovic, Bill Montana and Kurt Handschumacher of Savills Studley represented the fund.

Howard Fiddle, Evan Haskell, Brad Gerla, David Caperna and Mary Ann Tighe of CBRE represented the landlord, the Retirement Systems of Alabama.

The teachers’ pension manager currently leases 160,00 square feet at the building. It plans to add a lounge and a waiting room with media walls and touch-screen kiosks, the Wall Street Journal reported.

The 53-story, 3.5 million-square-foot building, is the largest office property in the city based on square footage.

“Because the landlord and tenant are both pension funds, the organizations approached the deal with a similar sensitivity toward risk,” Schuman told the Journal. “The landlord wanted to secure a price they can live with if the market changes.”

McGraw Hill Financial, which owns Standard & Poor’s, occupies 1.1 million square feet at the building. Hugo Boss rents a 74,000-square-foot space there as well. Photography and production firm Sandbox Studios took 68,000 square feet at the Financial District location in July. [WSJ, 2nd item]Ariel Stulberg