Signature Bank picks up more space at ESRT’s 1400 Broadway

Company expands footprint to 313K sf

Signature Bank president Joseph DePaolo in front of 1400 Broadway (Signature Bank, Google Maps, iStock)
Signature Bank president Joseph DePaolo in front of 1400 Broadway (Signature Bank, Google Maps, iStock)

Signature Bank is ringing the expansion bell at its office once more, adding more square footage to a large stockpile of space in the Garment District.

The company is adding nearly 33,000 square feet to its space at Empire State Realty Trust’s 1400 Broadway, the Commercial Observer reported, claiming the 16th floor on a long-term lease. The expansion extends Signature Bank’s footprint to more than 313,000 square feet between West 38th and West 39th streets, occupying 11 of its 37 floors.

The asking rent for the bank’s latest expansion is unclear. According to the Observer, the asking rent for its last 15-year lease was $67 per square foot.

Signature Bank was represented by a Colliers team including Michael Cohen and Andrew Roos in the lease deal. ESRT was represented by a Newmark team including Scott Klau and Erik Harris, as well as in-house by Ryan Kass.

This is a familiar refrain for Signature Bank, which is making its second expansion at the office building this year. In January, the company expanded by more than 168,000 square feet, adding to a portfolio that was already more than 112,000 square feet at the time.

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Prior to that, Signature Bank grew its footprint in November 2018 by approximately 21,000 square feet. The deal came months after it inked a 15-year lease for more than 91,000 square feet across three floors of the office building.

The multifamily lender smashed its earning record in the fourth quarter, reporting earnings per share of $4.34, up from $3.26 in the last quarter of 2020. Revenue increased to more than $569 million, up about $419 million from the previous year. Meanwhile, total deposits hit $106 million, up 40 percent year-over-year, and loans grew to about $65 billion, up 25 percent.

Office landlord ESRT has been diversifying its portfolio in recent months. CEO Tony Malkin in February promised more multifamily deals were on the way for the REIT after its $307 million purchase of two Manhattan apartment buildings, which added 625 residential units to its portfolio.

[Commercial Observer] — Holden Walter-Warner