Deutsche Bank’s asset management arm to relocate Midtown office following IPO

Recently rebranded DWS signs 82K sf lease at 875 Third Ave

New York /
Apr.April 26, 2018 09:00 AM

(from left) DWS CEO Nicholas Moreau and Global Holdings’ Eyal Ofer with 875 Third Avenue (credit: Wikimedia Commons, Global Holdings)

Deutsche Bank‘s asset management spinoff has finalized a deal to relocate its Midtown offices on the heels of an initial public offering last month that valued the company at nearly $8 billion.

DWS Group, which was previously known as Deutsche Asset Management before the German banking giant rebranded the unit last year ahead of its IPO, signed a lease for 82,000 square feet at Global Holdings Management Group‘s 875 Third Avenue, sources told The Real Deal.

The move is likely to generate significant cost savings for DWS, which will be relocating its offices two blocks east from Rudin Management’s 345 Park Avenue.

The asking rent for DWS’ 15-year lease was $82 per square foot, and while it wasn’t clear what it would have cost to renew at Rudin’s building, Park Avenue office space is among the priciest in the city.

The average asking rent on Park Avenue in Midtown was just shy of $107 per square foot during the first quarter, according to Newmark Knight Frank. That’s a 45 percent premium over the average of nearly $74 per square foot for the East Side, which covers the section of Midtown east of Park Avenue to the river.

A spokesperson for DWS declined to comment, and a representative for Global Holdings — which is run by Israeli billionaire Eyal Ofer — couldn’t be immediately reached.

JLL’s Ken Siegel and Peter Riguardi represented DWS in the deal. A separate JLL team of Paul Glickman, Diana Biasotti and Harley Dalton handle leasing at the 665,000-square-foot building, which Global Holdings bought from. Boston Properties in 2003 for for $370 million.

The brokers couldn’t be immediately reached for comment.

DWS will be moving into space at 875 Third occupied by the law firm Hogan Lovells, which is relocating to 390 Madison Avenue – the Midtown property currently undergoing a major redevelopment by L&L Holding Company and Clarion Partners (as the managing agent on behalf of the New York State Common Retirement Fund).

DWS manages €700 billion (or roughly $850 billion) for institutions and private investors. Deutsche Bank debuted the 60-year-old company on the Frankfurt stock exchange in March, selling a 22.5 percent stake in the company valuing it €6.5 billion (about $7.9 billion).

The move was part of a plan to create new a new revenue stream for Deutsche in an effort to turn around three successive years of losses at the bank. That poor performance led the German institution earlier this month to shake things up and name Christian Sewing as the bank’s new chief executive to replace outgoing CEO John Cryan.

Sewing faces some tough decisions that will chart the future of the bank, including what to do with its headquarters here in New York City. Deutsche Bank is currently headquartered Downtown at 60 Wall Street, and has been looking for a new office that could be as big as 1.3 million square feet.

Potential new homes include Two World Trade Center, 50 Hudson Yards and the Time Warner Center. The bank could also decide to renew and stay put.


Related Articles

arrow_forward_ios
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
Mayor Bill de Blasio (Getty, iStock)
NYC to revive $17B in public construction projects
NYC to revive $17B in public construction projects
arrow_forward_ios

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

Loading...