Australian consulate renews at Mobil tower

The Commonwealth of Australia has signed a 15-year lease extension on the 33rd and 34th floors of Japan-based Hiro Real Estate’s 150 East 42nd Street, the former Mobil tower. The Commonwealth uses the 46,476-square-foot space for its Permanent Mission to the United Nations and Consulate-General in New York. Terms were not disclosed, but Gregg Espach, who represented the Commonwealth along with Daniel Nack of UGL Equis, said in a statement that the transaction “comes at a signal moment in today’s real estate market to reduce occupancy costs.” In October 2008, Tishman Speyer had been in talks to buy a leasehold on the tower for between $300 million and $400 million, before pulling out of the deal. Hiro was reportedly paying $22 million annually with hikes up to $72 million for a 75-year extension on the building, which sits on property owned by the Goelet family. TRD