The Real Deal New York

Coca-Cola inks deal for Midtown space, sources say

Beverage company takes two floors in Madison Avenue building

June 12, 2012 04:30PM
By Adam Pincus

261 Madison Avenue (credit: PropertyShark)

Coca-Cola signed a lease on two floors at a Midtown office building owned by real estate investor Tamir Sapir, several industry sources told The Real Deal. The beverage manufacturer leased space at 261 Madison Avenue, according to the sources. Information from real estate data firm CoStar Group shows that an unidentified tenant signed a new lease last week for 43,874 square feet inside the 412,000-square-foot Madison Avenue building, located at the corner of 39th Street.

The rent was estimated at $45 per square foot, CoStar information shows.

Midtown office leasing slowed in May to 850,000 square feet, about 26 percent below the five-year average, information from commercial firm CBRE Group showed. The availability rate in Midtown was 11.7 percent in May, the same level as a month earlier, CBRE figures revealed.

Coca-Cola was represented by Colliers International, which declined to comment.

The soda maker, which also operates bottling plants in Queens, owns the 310,000-square-foot Plaza District building, situated at 711 Fifth Avenue, at 55th Street. But the building has no available office space (despite showing a floor available on CoStar), a source familiar with the property said.

The Cushman & Wakefield brokerage team led by Bruce Mosler, chairman of Global Brokerage, represents landlord Sapir.

A spokesperson for Cushman declined to comment, citing confidentiality agreements. The Sapir Organization and Coca-Cola did not immediately respond to calls for comment.

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