Flagstar Bank, which last year gobbled up a huge pile of Signature Bank loans and deposits, has secured more space to manage them.
The bank leased 59,000 square feet at 320 Park Avenue in Midtown East, the Commercial Observer reported. More than 54,000 square feet of that is office space, and the remaining 4,500 is ground-floor retail.
The asking rent for office space in the building, which is owned by a joint venture between Mutual of America Financial Group and insurance giant Munich Re, ranges between $100 and $125 per square foot.
Flagstar gained prominence in the real estate world in March when it acquired $12.9 billion in loans of the failed Signature Bank, along with Signature’s non-crypto deposits, from the Federal Deposit Insurance Corporation. Flagstar became a subsidiary of New York Community Bank in late 2022.
As it happens, Flagstar’s retail is at a site previously occupied by First Republic Bank, which also collapsed last year. Flagstar also has a 313,000-square-foot office lease at Empire State Realty Trust’s 1400 Broadway that it assumed in May.
A JLL team including Frank Doyle and David Kleiner represented the landlords, Mutual of America and Munich Re, while a Colliers team including Michael Cohen and Andrew Roos represented Flagstar.
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Two years ago, Mutual of America signed a lease at its jointly owned property for the 252,000 square feet it already occupied. The company had brought in Munich Re as a 25 percent owner of the 766,000-square-foot property in December 2021.
The owners recently completed a $35 million capital improvement, adding a fitness center and upgrading the lobby. The 16th floor was converted into a tenant amenity space with a conference center, food and beverage facilities, and an outdoor terrace.
Leasing activity in Manhattan jumped 27 percent from the third quarter to the fourth, according to Colliers. The office availability rate remained at a record high, however, with 96.5 million square feet available for lease.
— Holden Walter-Warner