Aragon CEO Alex Getelman and 601 Lexington Avenue

Another construction contractor has been charged with stealing millions from high-profile Manhattan office clients. The New York Times reported Aragon CEO Alex Getelman was hit with grand larceny charges by Manhattan District Attorney Cyrus Vance Jr. for overcharging hedge fund Citadel Investment Group by $1.2 million to build out its office space at 601 Lexington Avenue.

Getelman also allegedly failed to declare the extra income and pay the $286,000 tax bill associated with it. Getelman, who had said his firm specializes in hedge fund office build outs, pled not guilty. [more]

From the December issue: Just two years ago, during the onset of the fiscal meltdown, experts were bemoaning the flight of the New York City legal industry. One report suggested that law firm profits per partner were set to drop by up to 15 percent in the city, while decades-old mainstays like Heller Ehrman dissolved and left their offices. But now, with legal hiring on the rise, more than a few noteworthy leases are being signed, in what could perhaps be a legal leasing rebound. [more]

Bloomberg LP is seeking an additional 300,000 square feet near its headquarters at 731 Lexington Avenue and East 59th Street, which would expand its current space by one third, sources told Crain’s. The company already rents nearly 900,000 square feet at 731 Lexington Avenue, but there is no more room available at the 1.3 million-square-foot property, which is owned by Vornado Realty Trust. Over the last year, the company has added close to 500 lawyers. It was unclear where Bloomberg was looking but sources said there is a large block of space available at 601 Lexington Avenue, a Class A building owned by Boston Properties. [more]

General Motors has been allowed to reject its lease at 601 Lexington Avenue, the former Citigroup Center, as a result of its bankruptcy declaration, according to the second-quarter earnings report from 601 building owner Boston Properties. General Motors, which had leased 120,000 square feet in the building beginning June 1, rejected the lease June 12. The company will instead remain at the General Motors Building, at 59th Street and Fifth Avenue, as it had been considering doing. The 101,000-square-foot lease at the GM Building, also owned by Boston Properties, expires March 31, 2010. Comments

• Tweet

Even though its lease of 120,000 square feet at 601 Lexington Avenue began June 1, General Motors is in negotiations to renew its lease at Boston Properties’ GM Building instead of moving. The company’s lease for 101,000 square feet at the GM Building, at 767 Fifth Avenue, expires March 31, 2010. Staying at the GM Building would be more cost-effective for General Motors, which could avoid having to renovate the space at 601 Lexington Avenue. Because it is in bankruptcy, General Motors is allowed to reject its leases at any time.

Citigroup Center name changed to 601 Lexington Avenue: Boston
Properties has been talking about changing the name of the Citigroup
Center for almost a year, and just officially renamed the Class A
office building 601 Lexington Avenue. The 59-story property currently
has 45,000 square feet of direct space available, with tenants
including Citibank, Kirkland & Ellis and Merrill Lynch. Jones Lang
LaSalle is exclusively representing Boston Properties in leasing office
space in the building. TRD [more]

General Motors’ bankruptcy could have repercussions for Mort
Zuckerman’s Boston Properties, which owns the GM Building. General
Motors’ lease for 101,000 square feet at the GM Building expires in
March 2010, and the company’s 120,000-square-foot lease at another
Boston Properties building, 601 Lexington Avenue — the former
Citigroup Center — began on Monday, and expires in May 2019. GM hasn’t
begun construction on the new space, according to a source familiar
with the building. According to a document Boston Properties filed with
the SEC, GM’s bankruptcy gives it the right to reject the leases at any
time, but Boston could, in turn, file a claim for damages, which would
be subject to the limitations under the bankruptcy laws and
availability of funds to pay creditors. [more]