In a milestone for Edward J. Minskoff Equities’ 51 Astor Place, IBM just signed for 25,401 more square feet — bringing the 400,000 square-foot tower to 100 percent leased. The deal brings IBM’s occupancy to 143,836 square feet.
Minskoff built the project, which opened in summer 2013, entirely on spec. Conjecture was rampant that he faced a grave risk launching so much new space without tenants in an expensive new building at an untested East Village location.
But I pointed out in April 2013, that in new spec projects of under 500,000 square feet, such as 51 Astor Place, “History suggests the developer’s risk is nil.”
Minskoff signed IBM Watson right off the bat, and the project was more than 65 percent leased within six months of opening its doors.
Paul Glickman, who led a JLL team on the landlord’s behalf in the latest IBM deal, said that Minskoff’s “vision was validated when we ended up not only with a diverse tenant base from the TAMI sector, but with financial tenants as well,” including Claren Road Asset management and Tudor Investment Corp.
Asking rents were $90-$120 per square foot. The tower, designed by 4 World Trade Center architect Fumihiko Maki, boasts advanced technology and infrastructure. Jeff Koons’ whimsical, 16-foot-tall sculpture Balloon Rabbit (Red) stands guard in the lobby.