The Stahl Organization quietly strung together a series of leases at 277 Park Avenue in the last 18 months, led by a deal with a major multifamily lender.
M&T Bank agreed to a 93,000-square-foot lease at the property, the New York Post reported. The lender is relocating its regional headquarters from Vornado Realty Trust’s 350 Park Avenue.
Other notable leases at 277 Park include 50,000-square-foot deals for Visa International — an expansion – and Stepstone Group. Stahl signed six leases at the property in the last year and a half, totaling 270,000 square feet. The 1.8 million-square-foot building has 100,000 square feet of vacant office space.
A Cushman & Wakefield team led by leasing agent Mark Boisi represented Stahl in all of the new leases. Asking rents for all of the leases ranged from $100 to $120 per square foot.
The activity follows Stahl’s $120 million capital improvement program at the building, situated between East 47th and 48th streets. Upgrades include a new entrance, a lobby on Park Avenue, a redesigned lobby on Lexington Avenue, a fitness center and food from chef David Burke.
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Other tenants include JPMorgan Chase and Sumitomo Mitsui Bank. Stanley Stahl developed the tower for Chemical Bank, opening the building in 1964.
M&T has recently made headlines as it weathers challenges in the lending market. The bank reported a drop in commercial real estate loans in the third quarter as rising interest rates continue to stunt demand from multifamily borrowers. The Buffalo-based bank saw a 2 percent decline in CRE loans from the previous quarter, the second straight quarter with such a drop.
Manhattan’s office market has been building momentum. In the third quarter, leasing volume surged while the availability rate dropped to its lowest level in 18 months, according to a Colliers report. Tenants leased 9.2 million square feet last quarter, up 26 percent from the previous quarter and 28 percent year over year.
— Holden Walter-Warner