Investment Firm Inks 77K SF Lease at SL Green’s 245 Park

An investment firm is moving its Manhattan office space up and out of Hudson Yards to Midtown East.

Stonepeak Partners signed a lease for 77,000 square feet at SL Green’s 245 Park Avenue, the Commercial Observer reported. The asking rent on the deal was not disclosed, but the firm will lease space on the 31st and 32nd floors of the property for 15 years.

The move also marks a large expansion for Stonepeak from the 30,000 square feet it leased at Related Companies’ 55 Hudson Yards.

CBRE’s Silvio Petriello and Ben Friedland were among those who represented the tenant, while Cushman & Wakefield’s Patrick Murphy and Bruce Mosler were part of the landlord’s representatives.

It’s been a big year at 245 Park, which appeared to be trending in the wrong direction under the ownership of China’s HNA Group. After SL Green acquired the 1960s building out of bankruptcy last September, Japanese developer Mori Trust entered the picture this summer, buying 50 percent of the equity of the 1.7 million-square-foot property in a deal that valued the tower at $2 billion.

The stake sale was the largest office deal since the Federal Reserve started hiking interest rates and provided a shot in the arm for Manhattan’s office market, which is still rediscovering pricing power after the pandemic and interest rate jump.

Since taking ownership, SL Green has been plotting an overhaul with a new lobby, amenities center, elevator cabs and a full-service restaurant. Other recent arrivals at the building include Swedish private equity firm EQT Partners, which signed a 15-year lease of its own.

Related may not be reeling too much from the loss of a tenant, as Hudson Yards remains an intriguing landing spot for office occupants. This year, financial planner J.F. Lehman & Company took 29,000 square feet at 55 Hudson Yards, while law firm Milbank added 28,000 square feet to a large footprint at the property, which was fully leased at the time in April.

— Holden Walter-Warner