Private fund manager Lone Star Funds is expanding at Vornado Realty Trust’s 888 Seventh Avenue, more than doubling its footprint from 22,000 to 50,000 square feet.
The Texas-based private equity firm would pay in the $80s per square foot for its space in the 47-story building.
CBRE’s Harly Stevens represented the tenant and Vornado’s Jared Solomon represented the landlord.
Lone Star has around $70 billion in assets under management, including in its real estate funds. In 2014, the firm bought a 76-year ground lease for a Hilton Hotel at 304 East 42nd Street. Private fund managers like Lone Star, the Blackstone Group and CIM Group have expanded in recent years, filling the void left by retreating banks amid stricter regulations.
The building at 888 Seventh Avenue is also home to fund manager and Cushman & Wakefield parent TPG, which leased 100,000 square feet. Last year, Vornado refinanced the 882,000-square-foot building with a $375 million loan. [Crain’s] — Konrad Putzier