Private equity firm exiting 9 West for Paramount’s 31 West 52nd Street

Providence Equity Partners inks 21K sf lease

TRD New York /
Aug.August 02, 2018 04:02 PM

31 West 52nd Street and Albert Behler (Credit: Paramount Group)

UPDATED Tuesday, Aug. 14 at 10:27 a.m.: Private equity firm Providence Equity Partners is ditching its pricey office space at Sheldon Solow’s exclusive 9 West 57th Street.

The Rhode Island-based company signed a lease for 21,000 square feet at the Paramount Group’s 31 West 52nd Street, sources told The Real Deal.

Representatives for Providence Equity declined to comment.

A spokesperson for Paramount Group declined to comment, but on the company’s earnings call Thursday, executives made reference to a lease 31 West 52nd Street with a “prominent financial services firm.” The 11-year deal, they said, has a starting rent of $96 per square foot, with $105 per square foot in tenant improvements and 10 months of free rent.

The space is decidedly less expensive than the offices Providence Equity — which focuses on media and communications companies — occupies at 9 West 57th Street, where the company signed a lease for the full 47th floor back in 2009 at a reported rent around $200 per square foot.

Just months before the lease, Providence CEO Jonathan Nelson appeared on the cover of Fortune Magazine in May 2008 next to the headline “The Biggest Deal Ever,” a reference to a deal the company struck a year earlier to buy the parent of phone giant Bell Canada for $51 billion.

It would have been the largest buyout deal in history, but fell apart amid the financial crisis. After a string of bad transactions resulted in the company posting unfavorable returns, Nelson in 2015 told the New York Times that the company “grew too fast.”

Paramount Group, meanwhile, inked a deal with the law firm Pillsbury Winthrop at 31 West 52nd Street for roughly 90,000 square feet earlier this year.

At 9 West 57th Street, Solow will be facing significant vacancy when private-equity buyout giant KKR relocates next year to roughly 343,000 square feet at the Related Companies’ 30 Hudson Yards.

Solow is notoriously selective about the tenants he allows into his building, and often keeps large portions of the property vacant until a company comes along that he feels matches the building’s prestige.

In recent months, though, Solow lowered asking rents at the property as the availability rate in the Plaza District creeps up.

Neil Goldmacher and Brian Goldman at Newmark Knight Frank represented Providence Equity Partners in its lease with Paramount Group. The brokers declined to comment.

Correction: An earlier version of this report said KKR was taking 343,000 square feet at 10 Hudson Yards. It is not; it is moving to 30 Hudson Yards. 


Related Articles

arrow_forward_ios
237 Park Avenue and Scott Rechler (Photos via Getty; RXR)

What tenants are paying at RXR and Walton Street Capital’s 237 Park Avenue

What tenants are paying at RXR and Walton Street Capital’s 237 Park Avenue
The National Multifamily Housing Council’s monthly payment tracker found that 90.6 percent of those households paid some rent by Oct. 20. (iStock)

Rent collections in market-rate apartments stagnate in October

Rent collections in market-rate apartments stagnate in October
Four New York Plaza (Photo via Hines)

Four New York Plaza office tower hits the market

Four New York Plaza office tower hits the market
Gov. Andrew Cuomo (Getty; iStock)

New York City lifts lockdown for some Covid hot spots

New York City lifts lockdown for some Covid hot spots
518 Broadway (Google Maps)

Four years vacant: Landlord offers dire outlook for Soho building

Four years vacant: Landlord offers dire outlook for Soho building
Sam Chang and TownePlace Suites by Marriott at 324 West 44th Street (Google Maps)

Hotelier Sam Chang’s businesses snagged millions in PPP loans

Hotelier Sam Chang’s businesses snagged millions in PPP loans
Vornado CEO Steven Roth with 1535 Broadway and 220 Central Park South (Getty, VNO, Google Maps)

Vornado sees $100M retail JV loss, $190M in 220 CPS gains

Vornado sees $100M retail JV loss, $190M in 220 CPS gains
Gov. Andrew Cuomo (Getty, iStock)

Commercial eviction and foreclosure ban extended until January

Commercial eviction and foreclosure ban extended until January
arrow_forward_ios

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

Loading...