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
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Michael Gronager, chief executive officer, Chainalysis, in front of 114 Fifth Avenue (Chainalysis, LoopNet/Illustration by Steven Dilakian for The Real Deal)
Crypto data firm doubles space at Flatiron office
Crypto data firm doubles space at Flatiron office
(iStock)
Unprecedented landlord incentives powering U.S. office market recovery
Unprecedented landlord incentives powering U.S. office market recovery
1333 South Congress Avenue in Austin, Texas and Tecovas CEO Paul Hedrick (Google Maps, Twitter)
These boots are made for lending
These boots are made for lending
Noel Quinn, chief executive, HSBC Group; renderings of 66 Hudson Blvd (HSBC, Tishman Speyer)
HSBC eyeing move to Tishman Speyer’s Spiral
HSBC eyeing move to Tishman Speyer’s Spiral
IBM, Franklin Templeton eyeing SL Green’s One Madison
IBM, Franklin Templeton eyeing SL Green’s One Madison
IBM, Franklin Templeton eyeing SL Green’s One Madison
Anthony Wood, chief executive officer, Roku, and 5 Times Square in Manhattan (Getty Images, Wikipedia/Eden, Janine and Jim, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Roku racks up big lease at RXR’s 5 Times Square
Roku racks up big lease at RXR’s 5 Times Square
Joseph DePaolo, chief executive officer, Signature Bank in front of 1400 Broadway in Manhattan (Signature Bank, LoopNet, iStock/Illustration by Steven Dilakian for The Real Deal)
Signature Bank doubles down on ESRT’s 1400 Broadway
Signature Bank doubles down on ESRT’s 1400 Broadway
arrow_forward_ios

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

Loading...