Chubb Group negotiating 10-floor lease at Olayan’s 550 Madison Avenue

Insurance firm would be first tenant in Midtown East tower after $300M renovation

New York /
Aug.August 09, 2021 01:30 PM
550 Madison Avenue and Chubb Group CEO Evan Greenberg (Getty, 550 Madison)

550 Madison Avenue and Chubb Group CEO Evan Greenberg (Getty, 550 Madison)

There may finally be life at 550 Madison Avenue, with the Chubb Group negotiating to become the building’s first tenant.

The insurance company is in advanced talks to lease 10 floors comprising 250,000 square feet from Olayan America’s 37-story building in Midtown East, according to the New York Post.

A source told the newspaper that a deal for the space could be struck within the next three months. While the negotiations are at an advanced stage, they could still break down, with delayed office returns courtesy of a Covid surge serving as one potential obstacle.

The potential cost of the lease was not reported, but the asking rent in the building is expected to exceed $100 per square foot.

Chubb’s current headquarters are at the Durst Organization’s 1133 Sixth Avenue, where the company is leasing 184,000 square feet with a gross rent of $88.32 per square foot. The lease is set to expire in 2024.

Perella Weinberg was in discussions to join the building at 550 Madison Avenue in 2019 before renewing its lease at the GM Building.

Olayan bought the building, which previously served as the American headquarters for AT&T and Sony, from Chetrit Group in 2016 for $1.4 billion. The developer then undertook a $300 million renovation, including improvements to the retail portion of the building, as well as redesigning the facade on the lower floors and building a public garden. The 40-year-old building is a city-designated landmark, a status that led to some complications for the building’s repositioning under Olayan.

[NYP] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    (Getty)
    Manhattan office leasing jumps as availability and rents drop
    Manhattan office leasing jumps as availability and rents drop
    New York attorney general Letitia James and 109-20 Queens Boulevard in Forest Hills (Getty, Google Maps)
    Pinnacle’s Joel Wiener penalized for hiding condo conversion costs
    Pinnacle’s Joel Wiener penalized for hiding condo conversion costs
    (Photo Illustration by The Real Deal with Getty Images)
    US retail real estate rises from the ashes
    US retail real estate rises from the ashes
    Rubenstein Partners' David Rubenstein and 25 Kent Avenue in Williamsburg (Getty Images, Twenty Five Kent, Rubenstein Partners)
    Rubenstein rolls co-working company into 25 Kent
    Rubenstein rolls co-working company into 25 Kent
    Friedkin Property's David Friedkin 2 Canfield Avenue (LinkedIn, Google Maps, Getty)
    GID sells multifamily complex for $113M
    GID sells multifamily complex for $113M
    Regal Ventures’ Alexander Smith with 301 West 53rd Street (LinkedIn, Fifty Third and Eighth, Getty)
    Regal Ventures picks up Midtown retail condo in strong week of i-sales
    Regal Ventures picks up Midtown retail condo in strong week of i-sales
    Wharton Properties’ Jeff Sutton with 1551-1555 Broadway
    Sutton faces foreclosure on Times Square American Eagle
    Sutton faces foreclosure on Times Square American Eagle
    U.S. Treasury Secretary Janet Yellen
    NY gets more federal rent aid — but only 6% of need
    NY gets more federal rent aid — but only 6% of need
    arrow_forward_ios

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

    Loading...