R e a l E s Ot af tf ei c ae n Ld e Sa so icni ga l M e d i a
Banco Itaú Floor: 50
GM tower’s A-list tenants
In May, the Brazil-based bank expanded to 35,000 square feet on the top floor of the tower, and agreed to pay just shy of $200 per square foot, making it one of the priciest leases since the 2008 real estate boom, according to news reports.
Baron Funds Floors: 47 (partial), 48 (partial), 49 (full) Money manager Baron Funds, founded by billionaire Ron Baron, expanded by 25,000 square feet on the 47th floor last month at rents just shy of $200 per square foot, sources said. The move gives Baron over 80,000 square feet at the tower.
Perry Capital Floors: 19–20 The hedge fund, which has about 74,000 square feet at the tower, owns a controlling interest in Barneys New York and manages about $3.4 billion in assets, according to hedge fund tracker Insider Monkey. It pays rents in the low-$90s per square foot, according to CompStak.
York Capital Management Floor: 17 The hedge fund has 35,537 square feet and manages about $19 billion in assets, according to Forbes. Founder James Dinan lost his entire life savings on Black Monday in 1987, but is now worth $2 billion, according to the magazine.
Reservoir Capital Floor: 16 In September, the investment manager Reservoir Capital took 38,000 square feet, which it sublets from the General Motors Company. The firm, which is run by Och-Ziff Capital Management veterans Daniel Stern and Craig Huff, manages more than $6 billion in funds, according to news reports.
Grosvenor Capital Management Floor: 14 In December, fund of funds Grosvenor Capital Management inked a deal for the 14th floor. Grosvenor signed a seven-year lease for 38,100 square feet of space. The rent was reportedly in the low $80s per square foot.
Maverick Capital Floor: 11 Hedge fund Maverick Capital signed a 10-year, 36,126-square-foot lease in 2010, paying around $80 per square foot, according to published reports. The fund, which is headed by founder and former billionaire Lee Ainslie III, took a major hit during the recession. But in the last few years, it’s regained much of its value, according to the site Hedgefundletters.com, a non-profit industry newsletter.
Icahn Enterprises Floors: 46 and 47 Carl Icahn is worth $20.3 billion, making him the 18th-richest person in the country, according to Forbes. His firm, Icahn Enterprises, leased just under 28,000 square feet in the building in 2012, paying rents in the high-$170s per square foot, according to CompStak.
The Estée Lauder Companies Floors: 37–46 Cosmetics manufacturer Estée Lauder has had offices in the GM Building since 1969, and currently holds just under 310,000 square feet of space, according to CoStar. CompStak data shows that the company pays rents in the mid-$80s per square foot for the majority of its space.
J.C. Flowers & Company Floor: 23rd (partial) In January, private equity billionaire J. Christopher Flowers’ firm, J.C. Flowers & Company, inked a deal for 18,134 square feet in the building. The firm agreed to pay rents starting in the mid-$80s per square foot in the five-year sublease deal, a steep discount from the $140 per square foot the firm paid at its last home, at 717 Fifth Avenue, CompStak data shows.
Weil, Gotshal & Manges Floors: 21–22, 24–35 International white-shoe law firm Weil, Gotshal & Manges has had an office in the GM Building since 1968 (perhaps an arrangement of convenience since it represented General Motors), and currently has over 360,000 square feet at the property, according to CoStar. The firm is one of a select few with gross revenue over $1 billion a year, according to a ranking from American Lawyer magazine.
Macklowe Properties Floor: 21 (partial) Harry Macklowe continues to operate out of his former prized possession, with about 30,000 square feet on the 21st floor.
Perella Weinberg Floors: 3, 4, 5, 10 (partial) This asset manager occupies over 100,000 square feet at the building, and pays rents that range from the mid-$70s to the mid-$80s per square foot, according to CompStak. The firm raised more than $1.1 billion before setting up shop in 2006, leading Gawker to call it “possibly the most expensive start-up in Wall Street history.”
www.TheRealDeal.com April 2014 39