Blackstone co-founder’s family wealth firm moving to Park Avenue

Peterson Management inks deal for 40K sf at Boston Properties’ 399 Park

New York /
Nov.November 03, 2017 02:02 PM

The investment firm that manages the family wealth of former Lehman Brothers CEO and Blackstone Group co-founder Peter Peterson is moving its offices to A Pricy Space On Park Avenue.

Peterson Management, headed by Peter’s son, Michael, signed a lease for 40,000 square feet on the 14th floor at Boston Properties399 Park Avenue, sources told The Real Deal. The space includes part of a glass box the landlord built on the rooftop of the building’s setbacks and includes outdoor terraces. The rent starts at $130 per square foot and escalates to $150 per square foot toward the end of the 15-year term, according to a source with knowledge of the deal.

Representatives for Boston Properties and Peterson couldn’t be immediately reached for comment.

Seth Hecht at Cushman & Wakefield represented Peterson along with Joseph Conwell of the Philadelphia-based GPX Realty Partners.

Along with the Peterson Foundation, the nonprofit that Peter Peterson launched in 2008 to focus on fiscal policy issues, the management shop will be relocating from Paramount Group’s 712 Fifth Avenue, where it occupies more than 26,000 square feet on a handful of leases expiring next March.

Peterson served as the US Secretary of Commerce under President Richard Nixon from 1972 to 1973. After leaving he went to be CEO of Lehman Brothers, where served until 1985 when he co-founded the Blackstone Group with Stephen Schwarzman.

He made most of his fortune when Blackstone went public in 2007 and he sold a large portion of his stake for $1.85 billion, according to Forbes, which placed his net worth at $2.1 billion. That makes him the 973rd richest person in the world.

Boston Properties in 2016 kicked off a capital-improvement project at the 1.7 million-square-foot tower, formerly known as the Citigroup Building, with an eye toward filling a block of roughly 350,000 square feet left behind after Citigroup made plans to relocate its headquarters to the Lower Manhattan complex at 388 and 390 Greenwich Street.

It’s one of several large vacancies calling into question Park Avenue’s reputation as the “Boulevard of Business” and its popularity with large financial tenants, which are heading to places like Lower Manhattan and the Far West Side.

Major League Baseball is leaving behind some 220,000 square feet at HNA Group’s 245 Park Avenue when it relocates to the Rockefeller Group’s 1271 Sixth Avenue, the former Time-Life Building. And Blackrock Is Moving From Two Park Avenue buildings where it occupies 700,000 square feet to 50 Hudson Yards.

NorthStar Realty Finance is relocating from 399 Park to 590 Madison Avenue, where it will consolidate offices with Tom Barrack’s Colony Capital after the two merged. And Boston Properties will get back more than 60,000 square feet at its tower next year from the hedge fund Eton Park, which announced in March it was shutting down after a 13-year run amid headwinds facing the investment industry.


Related Articles

arrow_forward_ios
Vornado’s Steven Roth and One Park Avenue (Getty, Vornado)
Here’s what tenants are paying at One Park Ave
Here’s what tenants are paying at One Park Ave
An aerial of 341-347 Madison Avenue and Boston Properties CEO Owen D. Thomas (Google Maps, Real Estate Roundtable)
Boston Properties moves forward with teardown of ex-MTA HQ
Boston Properties moves forward with teardown of ex-MTA HQ
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
Tower 535 in Hong Kong and WeWork CEO Sandeep Mathrani (Photos via SOM, Getty)
WeWork exits first Hong Kong location as part of global downsizing
WeWork exits first Hong Kong location as part of global downsizing
Vornado's Steve Roth. (Getty, Google Maps)
Here’s what tenants are paying at Vornado’s 909 Third Avenue
Here’s what tenants are paying at Vornado’s 909 Third Avenue
Mack-Cali’s CEO Mahbod Nia with 99 Wood Avenue South, 101 Wood Avenue South in Iselin, NJ, and 333 and 343 Thornall Street in Edison, NJ (Google Maps)
Mack-Cali Realty sells Metropark complex for $254M
Mack-Cali Realty sells Metropark complex for $254M
135 West 29th Street and Kaufman Organization CEO Edward Hart (Google Maps, Kaufman)
Kaufman Org closes on $35M ground lease deal
Kaufman Org closes on $35M ground lease deal
arrow_forward_ios

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

Loading...