New York-based hedge fund manager Castle Hook Partners has finalised a lease agreement for the penthouse office space in Related Companies' future skyscraper at 625 Madison Avenue. A lease memorandum filed in city records on Monday confirms that Castle Hook has signed a contract for the entire 52nd and 53rd floors of the planned 53-storey building.
The exact rent has not been disclosed, but it is presumed that Castle Hook paid a premium price. As reported by The Wall Street Journal in July, Related is aiming for rents of up to $400 per square foot for the tower's upper floors. The lease agreement has a term of 15 years and includes options for a further 10-year extension.
Castle Hook Partners currently operates its main office at BXP's 767 Fifth Avenue, known as the General Motors Building. It is presently unclear whether this new lease with Related constitutes a relocation or an expansion of the company's business activities. A spokesperson for Related declined to comment on the transaction, and the Castle Hook team did not immediately respond to a request for comment.
Increasing Interest in 625 Madison Avenue
The deal with Castle Hook follows another significant lease commitment: global investment firm General Atlantic secured 152,000 square feet at 625 Madison Avenue earlier this month and will occupy five floors as a future anchor tenant. Private equity firm Veritas Capital also appears to have secured 92,743 square feet in the development, according to Colliers' August Manhattan Office Snapshot Report.
Furthermore, according to The Wall Street Journal, Ralph Lauren's Polo Bar is in discussions regarding a potential relocation to Related's skyscraper, signalling a possible change of location for the iconic restaurant from 1 East 55th Street. Philippe Visser of Related signed the contract in mid-September on behalf of the developer, while David Rogers, a senior executive at Castle Hook, signed for the tenant. It is not known whether external brokers were involved in this transaction.
Key Parties Involved
- —Tenant: Castle Hook Partners
- —Developer: Related Companies
- —Property: 625 Madison Avenue
- —Tenant's representative: David Rogers
- —Developer's representative: Philippe Visser
