SL Green has arranged a series of intertwined lease transactions shuffling three tenants at two of its buildings. Two leases were terminated early in the process.
German bank WestLB terminated its 27,500-square-foot lease on the entire seventh floor of 1185 Sixth Avenue with eight years remaining, allowing another tenant in the building, accounting firm RSM McGladrey, to expand into the space. The addition brings RSM’s holdings in the building up to 164,771 square feet.
RSM simultaneously surrendered its lease on 52,420 square feet of space at 750 Third Avenue, which had around five years remaining. Regent Business Centers will take the space vacated by RSM in a new, 10-year lease. The two leases terminated were at below market rent.
“This series of transactions required delicate balance in negotiating the priorities and schedules of various unrelated parties,” said Steven Durels, Executive Vice President and Director of Leasing and Real Property for SL Green, in a statement. “The result unlocked significant rental value and mitigates future lease expiration exposure.”