Related Secures Anchor Tenant at 625 Madison
Jeff Blau is getting the tenant horses in the 625 Madison Avenue stable.
General Atlantic, a global investment firm, signed a 150,000-square-foot lease to anchor Related Companies’ Plaza District development, the Commercial Observer reported. The company will occupy five floors when the building opens, scheduled for 2029.
“This will be a building of industry leaders, and we are thrilled to have General Atlantic on board and look forward to delivering an exceptional new headquarters for their team,” Blau said in a statement.
It’s unclear who brokered the deal. It’s also unclear what the length and asking rent of the lease are; in the second quarter, the average asking rent for Class A office space in the neighborhood was $97.23 per square foot, according to Colliers.
The 150,000-square-foot lease was the third-largest in Manhattan in August, according to a monthly Colliers report. Private equity firm Veritas Capital also signed a lease at the building for 93,000 square feet, according to the report. Both deals were reported to be in the works prior to their finalizations.
Related purchased the site from SL Green in December 2023 for more than $600 million. That followed a decade-long saga that saw SL Green finally take back control of the Madison Avenue property from billionaire investor Ben Ashkenazy.
Related initially planned a mixed-use project combining residential, retail and hospitality components, but more recently said it would deliver an office building to capitalize on demand for premium Manhattan workspaces.
Saudi Arabia’s Public Investment Fund took a two-thirds stake in the planned 1,200-foot Manhattan skyscraper last year. The $1 trillion sovereign wealth fund had already invested approximately $200 million into the project at the time the stake deal was disclosed.
In July, Related was reported to be in discussions to bring Ralph Lauren’s Polo Bar to the development. Details about the lease and the potential relocation from 1 East 55th Street for the exclusive eatery were not disclosed.
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