HSBC renews 548K sf lease at 452 Fifth

Bank had kicked tires at Hudson Yards, Manhattan West, World Trade Center: sources

New York /
Apr.April 05, 2017 07:00 AM

Financial services giant HSBC Bank is staying put at its U.S. headquarters at 452 Fifth Avenue, after several years of exploring its options elsewhere, The Real Deal has learned.

The London-based bank has inked a deal to remain in its 548,000-square-foot space at HSBC Tower for at least five more years, according to Eli Elefant of PBC USA, which owns the building.

HSBC scoped out spaces at Related Companies’ Hudson Yards, Brookfield’s Manhattan West and the World Trade Center complex before finally deciding to stay put, sources said. The company’s lease will now expire in 2025.

A team led by Peter Riguardi of JLL represented HSBC in the negotiations, while a JLL team led by Paul Glickman represented PBC. Elefant declined to comment on asking rent, but sources with knowledge of the deal said PBC was asking in excess of $80 per square foot. Sources told TRD that rent for the extension period — 2020 through 2025 — increased from $32 million per year to $43 million per year.

The deal is a welcome result for PBC, which previously shot down reports that it was looking to sell the building. Sources said Nochi Dankner, a prominent shareholder in PBC’s Israeli parent company IDB Holding Corp., had been the one pushing for the sale. Last year, an Israeli court sentenced Dankner to two years in prison for securities fraud for his role in fraudulent transactions designed to influence the share price of the troubled company.

The criminal proceedings did not impact PBC, however.

PBC bought the building from HSBC for $330 million in 2010 in a lease-back deal and upgraded it, renovating the lobby and entrance as well as the high-rise elevators.

Elefant told TRD that PBC is looking to hold on to the Fifth Avenue tower long term and is seeking only to grow its business in North America.

“This asset is equal in its quality to new construction,” he said. “We’ve had an unequivocal commitment to the asset and to growing its value.”

The 865,000-square-foot building, on the corner of 40th Street, is fully occupied. Other tenants include the law firm Baker Mckenzie, which inked a 15-year lease in 2011 for 105,803 square feet, and asset manager Tilden Park Capital Management, which signed a deal for 16,140 square feet in 2013.


Related Articles

arrow_forward_ios
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
arrow_forward_ios

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

Loading...