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