The Real Deal New York

Wells Fargo paying RFR a fee to break lease at Seagram Building

Bank is relocating to Hudson Yards later this year
January 25, 2019 01:30PM

Wells Fargo CEO Tim Sloan (red) and Aby Rosen (blue) with 375 Park Avenue (Credit: Wells Fargo, Getty Images, and Wikipedia)

Wells Fargo, which is relocating its offices later this year to Hudson Yards, will terminate its lease at RFR Realty’s Seagram Building – a move that will cost the bank a fee of more than $1 million.

The bank’s lease in the iconic building at 375 Park Avenue expires in 2021, according to Trepp. But Wells Fargo has chosen to terminate the lease early, Commercial Real Estate Direct reported.

Wills Fargo is allowed to leave the building before its lease is up, so long as it submits a 60-day notice. The early termination comes with a $1.2 million payment.

Wells Fargo in 2015 inked a deal to buy a 500,000-square-foot office condominium at the Related Companies and Oxford Properties Group’s 30 Hudson Yards tower, which was under construction at the time.

Related and Oxford are planning to open the larger Hudson Yards development in March, and over the next few months office tenants will begin moving into 30 Hudson Yards and 55 Hudson Yards.

In addition to its space at the Seagram Building, Wells Fargo also occupies around 372,000 square feet at 150 East 42nd Street. [CRE Direct] – Rich Bockmann