Hedge Fund Claims Manhattan Office Rent Record at 625 Madison
How does Related Companies follow up securing an anchor tenant for its prominent office development? By breaking the local rent record weeks later.
Hedge fund Castle Hook Partners signed a lease for the 53,000-square-foot penthouse at 625 Madison Avenue in Midtown Manhattan, the Financial Times reported. The exact rent wasn’t disclosed, but it ranges from $350 to $400 per square foot, easily surpassing the $327.50 per square foot record set at Stefan Soloviev’s 9 West 57th Street earlier this year.
The hedge fund is expected to pay up to $21.2 million in rent annually for its space at 625 Madison, which is not expected to be completed until 2029. Castle Hook plans to occupy its space in the second half of that year.
David Rogers’ Castle Hook will relocate from the General Motors Building on Fifth Avenue. The firm counts $11 billion in assets under management and employs 35 workers, who will have plenty of room to stretch their legs at 625 Madison.
A month ago, global investment firm General Atlantic signed a 150,000-square-foot lease to anchor the development. Private equity firm Veritas Capital also signed a lease at the building for 93,000 square feet.
Related bought the site from SL Green in December 2023 for more than $600 million. That followed a decade-long saga that saw SL Green take back control of the Madison Avenue property from billionaire investor Ben Ashkenazy.
Related planned a mixed-use project combining residential, retail and hospitality components, but pivoted to 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 revealed.
In the spring, the Soloviev Group signed a lease at 9 West 57th Street for $327.50 per square foot, setting a record for Manhattan office rent and surpassing the previous record of $320 per square foot. The tenant is a private international family office that signed a 10-year deal for 5,063 square feet on the 50th floor.
In June, Soloviev began marketing another availability at the building, eyeing $400 per square foot for the 11,155-square-foot space on the 50th floor.
Read more
Related secures anchor tenant at 625 Madison
9 West sets new record for Manhattan office rent
Soloviev eyes record $400 rent at nearly full 9 West 57th Street
