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ridgewater Associates, the world's largest hedge fund manager, has made an unexpected move by signing a lease for its first Manhattan office at 295 Fifth Ave. The Westport-based firm closed on a 60,000 square-foot deal in the former Textile Building, which was redeveloped by Tribeca Investment Group, PGIM Real Estate, and Meadow Partners for $350 million.

    The building's upgrades include a two-story penthouse, ground-floor courtyard, terraces, and hospitality amenities. Bridgewater's expansion to Manhattan comes after a reported downsizing 18 months ago, but it will keep most employees in Connecticut. CEO Nir Bar Dea has been working to change the firm's insular culture.

    The deal marks a shift in the Midtown South leasing dynamic, as a new CBRE report finds that the district is evolving into a more balanced market with financial and legal tenants joining tech companies. The survey notes that the addition of amenities and supply upgrades will benefit a broader tenant mix, particularly as availability tightens in trophy properties throughout Manhattan.

    Midtown South's mostly older properties, which appealed to tech firms' preferences for non-glass and non-steel buildings, are now attracting a more diverse range of tenants. Demand has driven 5.8 million square feet of new construction and 13.3 million square feet of renovations, making the submarket poised to capture spillover demand from other areas of Manhattan.