IBM subleases Midtown South floor from Carl Icahn-owned textile manufacturer

New York /
Nov.November 28, 2012 06:00 PM

Computer giant IBM has signed a lease in Midtown South to take space occupied by a textile company owned by investor Carl Icahn. IBM inked a deal for the entire 54,045-square-foot eighth floor at 63 Madison Avenue, a 735,257-square-foot office building owned by George Comfort & Sons and Loeb Partners Realty.

The rent starts at $32 per square foot, sources said. The rate is far below the average price per square foot in Midtown South, which was $48.73 per square foot in October, figures from commercial firm Cassidy Turley show. One insider speculated it might be low because it was a sublease.

The computer firm is subleasing the space from WestPoint Home, a manufacturer of sheets and towels, which Icahn acquired in 2005 through a bankruptcy sale. The lease runs through June 2019, information from CoStar Group shows. WestPoint is consolidating on another floor of the building, also known as 28 East 28th Street, a source said.

CBRE Group brokers Jared Freede, Bill Iacovelli and Michael Monahan represented WestPoint. James Ackerson and Carl Eriksen, also of CBRE, represented IBM.

IBM is currently located at the 2.2 million-square-foot 11 Madison Avenue, three blocks south between East 24th and East 25th streets.

WestPoint and IBM did not respond to a request for comment. CBRE declined to comment.

Matt Coudert, an executive vice president at George Comfort, which was not directly involved in the sublease, said of the move that IBM’s “presence affirms the quality of the building, which can attract top tenants in the market.”


Related Articles

arrow_forward_ios
SL Green's Marc Holliday and Daniel Boulud with One Madison Avenue (Getty, SL Green)
Daniel Boulud lands at SL Green’s One Madison Avenue
Daniel Boulud lands at SL Green’s One Madison Avenue
SL Green's Marc Holliday, AECOM's Troy Rudd and 100 Park Avenue (Getty, AECOM, LoopNet)
Construction giant saws off half of Park Avenue office space
Construction giant saws off half of Park Avenue office space
Juda Srour with 159 West 25th Street (Loopnet, Getty)
Jay Suites signs 60K sf lease in Chelsea
Jay Suites signs 60K sf lease in Chelsea
 38 Gramercy Park North and Victor Sigoura of Legion Investment Group (Apartments, Getty)
Gramercy Park co-op building hits market for $50M amid legal fight
Gramercy Park co-op building hits market for $50M amid legal fight
Meta's Mark Zuckerberg and a rendering of 225 Park Avenue South (Getty, 225ParkAvenueSouth)
Facebook signs out of Midtown South
Facebook signs out of Midtown South
SL Green chairman Marc Holliday and One Madison Avenue (Getty Images, SL Green Realty Corp)
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Columbia Property Trust CEO Nelson Mills and 229 West 43rd Street (Columbia Property Trust, VTS Marketplace, Getty Images)
BuzzFeed takes 110K sf in Times Square move
BuzzFeed takes 110K sf in Times Square move
IBM's Arvind Krishna and One Madison Avenue (IBM, One Madison Avenue, Illustration by Kevin Cifuentes for The Real Deal)
IBM CEO: Only 60% of office workers will ever return full-time
IBM CEO: Only 60% of office workers will ever return full-time
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...