The Real Deal New York

Royal Bank of Canada renews 400K sf at Brookfield Place

Company will stay put at least through 2032
February 02, 2017 08:32AM

Brookfield Place

Royal Bank of Canada renewed its 400,000-square-foot lease at 200 Vesey Street in Lower Manhattan at Brookfield Place through at least 2032.

The bank, Canada’s largest lender by assets, had a lease expiration coming in 2022, but decided to renew early for at least 15 years, Bloomberg reported.

RBC will continue to be the second-largest occupier at Brookfield Property Partners’ TRData LogoTINY 2.1 million-square-foot tower, which is part of its 8.4 million-square-foot Brookfield Place complex.

American Express owns the 1.3 million square feet it occupies in the building.

Brookfield refinanced 200 Vesey in December with a $290 million loan from Wells Fargo.

 

RBC executives said they had considered moving to other properties in Lower Manhattan as well as towers at Hudson Yards and other Brookfield buildings before deciding to renew.

One factor in staying, the bank’s head of corporate real estate for the U.S. said, was to remain close to its offices in the Goldman Sachs Group tower in Jersey City, which is just one stop away on the PATH train across the Hudson River.

The rent in the deal was not disclosed.

“You’re always concerned when tenants start to look at the market, but Lower Manhattan provides a real basis for demand from tenants,” Brookfield vice president David Cheikin said. “What it offers is a great amenity base for employees, and a great commuting base for their employees. We continually hear from tenants it reaffirms their ability to attract and retain talent.”

A team at Cushman & Wakefield led by Bruce Mosler represented RBC, while an in-house team negotiated for Brookfield.

Brookfield is shopping a 49-percent stake in the complex that could value it at $5 billion. [Bloomberg] – Rich Bockmann