After contemplating a move for the better part of a year, a mutual fund giant has committed to a large slice of One Madison Avenue.
Franklin Templeton signed a 15-year lease for 347,000 square feet at the Midtown South office development with landlord SL Green. The investment management firm will occupy floors 11 through 22 of the tower, which is still more than a year from completion.
An SL Green representative told The Real Deal that asking rent was $145 per square foot.
A Cushman & Wakefield team including Jeff and John Cushman represented Franklin Templeton in the deal. A JLL team including Paul Glickman and Alex Chudnoff represented the landlord. The brokers position Midtown South as work-and-play hub for the creative sector.
Bloomberg reported at the beginning of the year that the investment firm was eyeing north of 200,000 square feet at the office tower. IBM was also looking at space in the building.
IBM took the plunge in March, signing a 16-year lease for 328,000 square feet to become the anchor tenant at the Flatiron District office property. Chelsea Piers Fitness was the first tenant, signing a 20-year lease for 56,000 square feet last fall.
SL Green chairman Marc Holliday noted the IBM and Franklin Templeton deals are two of the three biggest office leases of 2022. Franklin Templeton’s lease brings the property up to 55 percent leased.
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The property occupies a full-block site, bound by Park and Madison Avenues, as well as East 23rd and East 24th Streets. SL Green acquired the 1.4 million-square-foot property in 2005 for $918 million before announcing a $2.3 billion redevelopment for the site. Amenities include fitness products and experiences, an upscale restaurant, a dining market, a tenant-exclusive lounge and a rooftop deck.
The investment firm has a history with the landlord. In 2015, Franklin Templeton and subsidiary Fiduciary Trust International signed a 15-year lease for 126,000 square feet at SL Green and Vornado Realty Trust’s 280 Park Avenue.