Kate Spade expands at Morgan Stanley’s 2 Park Ave.

TRD New York /
Jul.July 22, 2013 04:30 PM

Women’s apparel designer Kate Spade New York is taking another 39,300 square feet at Morgan Stanley Real Estate Fund’s 2 Park Avenue, bringing its total space in the office tower to more than 135,000 square feet, The Real Deal has learned from CompStak.

Best known for its signature handbags, Kate Spade moved into the 981,000-square-foot, 29-story skyscraper two years ago and will be expanding into its new space on the 16th floor sometime in December. Its total square footage in the building, at East 33rd Street in Murray Hill, will be 135,120 square feet, according to CoStar.

Kate Spade agreed to pay in the mid-$50s per square foot for 11 years, which includes nine free months of rent, the CompStak data shows. Newmark Grubb Knight Frank’s David Falk and Jason Greenstein represented the tenant; a Cushman & Wakefield team of Tara Stacom, Whitten Morris, David Green, and Mitchell Arkin represented the landlord. Morris confirmed the deal, but declined to comment further. None of the other brokers were immediately available for comment, nor was a spokesperson for Kate Spade.

The building is anchored by online shopping website Gilt Groupe and law firm Herrick, Feinstein. In 2007, a joint venture between L&L Holding Company and an affiliate of General Electric Pension Trust sold the property to Morgan Stanley Real Estate Fund for $519 million.

Morgan Stanley, whose holdings include 1585 Broadway and 522 Fifth Avenue, is revving up to raise up to $3 billion for a global property fund, the Wall Street Journal reported. The move represents one of the first efforts by a major bank to find its fundraising voice after being shouted down by private equity giants such as Starwood Capital Group and Blackstone Group since the downturn.


Related Articles

arrow_forward_ios
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

CoStar reaches $11M settlement in copyright infringement suit against Xceligent

620 Sixth Avenue and RXR Realty's Scott Rechler (Credit: Getty Images, RXR Realty)

RXR gets $400M+ from Goldman Sachs to refi Sixth Avenue building

A New York court’s greenlight of a class action against Big City Realty could change the dynamic of class action suits. (Credit: iStock)

“Nightmare” for landlords: Court OK’s class action against Harlem owner

WeWork founder scrambled for $100M loan before $1.7B bailout

The Daily Digest - Tuesday

WeWork’s cash flow troubles, selling NYCHA’s air rights and more: Daily digest

arrow_forward_ios