O
aktree Capital Management has secured a significant lease deal for 79,000 square feet at Vornado's 1290 Sixth Avenue in Midtown Manhattan. The investment manager will occupy the entire 12th floor of the building, with an asking rent of $98 per square foot. This leaves only 120,000 square feet available at the tower.
The deal marks a major move for Oaktree, which is relocating from Paramount Group's 1301 Sixth Avenue. Vornado represented itself in-house on the transaction, while CBRE's John Nugent brokered the lease for the tenant.
Vornado is currently undergoing renovations at the property, including updates to the lobby and the addition of wellness amenities. The building is also home to investment firm Neuberger Berman, which occupies 400,000 square feet under a long-term lease signed in 2015.
Midtown's office market is experiencing a surge in leasing activity, with last year's volume reaching its highest level since 2018, according to Colliers. Sixth Avenue has been particularly strong this year, with the FDIC signing a lease for 148,000 square feet at Edward J. Minskoff Equities' 1166 Sixth Avenue earlier this month.
The neighborhood's average asking rent remains below pre-pandemic levels, standing at $78 per square foot - about 9 percent lower than its March 2020 average, according to Colliers.
