Mutual of America Financial Group is making moves at its 320 Park Avenue, including becoming a rent-paying tenant at the office building.
The firm signed an official lease for the 252,000 square feet it already occupied at the Midtown office building, the New York Post reported. Terms of the long-term lease were not reported, but asking rents in the building range from $95 to $150 per square foot.
Signing an official lease at its own building came about after the company brought in a joint venture partner to co-own the 766,000-square-foot property. The Post reported Munich Re came in as a 25 percent partner in December.
The building’s longtime owner had company on the lease front. Investment management firm Pzena, which was already a tenant at 320 Park Avenue, doubled its space to almost 80,000 square feet, according to the Post. The building has a vacancy rate of four percent.
JLL’s Frank Doyle and David Kleiner represented both sides for the Mutual of America lease. They represented the firm in the Pzena lease as well, while Savills’ Ken Ruderman and Brad Wolk represented Pzena.
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Mutual of America recently completed a $35 to $40 million capital improvements project at the building, including a lobby upgrade and adding a fitness center. The 16th floor was also converted into a tenants’ amenity space with a conference center, food and beverage facilities and an outdoor terrace.
In 2020, financial services firm Raymond James signed up for 160,000 square feet at 320 Park Avenue. The deal was one of New York City’s largest in the early months of the pandemic, coming shortly after TikTok leased 232,000 square feet at the Durst Organization’s One Five One in May 2020.
Manhattan’s office market hit a vacancy rate of 17.3 percent at the end of 2021, up by one-fifth from 2020. But leasing activity accelerated during the year, rising 60 percent in the third quarter and finishing the year at more than twice the pace of 2020’s fourth quarter.
[NYP] — Holden Walter-Warner