Minskoff Makes Move With 54K SF Office Lease on Sixth Ave

Edward Minskoff is in the money once again at 1166 Sixth Avenue.

Business strategy and solutions firm L.E.K. Consulting signed a 10-year, 54,000-square-foot lease to relocate to the Midtown Manhattan property from 114 West 47th Street, the Commercial Observer reported. It will occupy the 25th floor of the building, as well as part of the 24th floor.

Both Minskoff’s Edward J. Minskoff Equities and Marsh McLennan own interests in the property.

The asking rent on the lease was not disclosed. In the first quarter, the average asking rent for office space in Midtown Manhattan was $80.47 per square foot, according to Colliers.

A Newmark team including Andy Sachs and David Falk represented the landlord, while Savills’ Allyson Bowen represented the tenant.

Minskoff modified the debt backing the 44-story Midtown office tower prior to the new year. Wells Fargo extended the maturity dates and tweaked interest rates for three loans totaling $235 million. The securitized debt briefly hit special servicing after hedge fund D.E. Shaw — once responsible for leasing two-thirds of the property — started to exit the premises.

The landlord is developing a fitness center and lounge to pair with a new 12,000-square-foot conference center.

Other recent leases at 1166 Sixth Avenue include deals with insurance writer CNA Insurance and another insurance firm, Axis Insurance, which signed leases for 40,000 square feet each. At the start of the year, the FDIC — the agency in charge of insuring bank deposits and overseeing financial institutions — signed a lease for 148,000 square feet.

In May, tenants signed deals for 3.1 million square feet of office space, down roughly 7 percent from the month prior, according to a Colliers report. Availability tightened slightly, while the average asking rent dropped by 1.2 percent — the sharpest drop in three years — to roughly $73.50 per square foot.

— Holden Walter-Warner