(NEW YORK) – The New York office of Hines, the international real estate firm, announced today that Simpson Thacher & Bartlett LLP has executed an agreement to renew its lease for 595,000 square feet at 425 Lexington in Midtown Manhattan. Encompassing 26 floors of the 31-story building, the lease will be reset to expire in 2033. The lease extension will become effective subject to typical lender consent or upon completion of the sale and payment of the mortgage, which is due in August 2013.
Lewis Miller, Ken Rapp and Ramneek Rikhy of CBRE represented Simpson Thacher in lease negotiations, while Hines represented the owner, its Hines U.S. Core Office Fund.
“We have enjoyed a long relationship with Simpson Thacher, and their confidence in and recommitment to 425 Lexington Avenue speak volumes about the quality of this unique asset,” said Hines’ Senior Managing Director for the New York office, Tommy Craig.
Michael Hersch, chief operating officer of Simpson Thacher, commented, “We have been pleased to be a tenant at 425 Lexington under Hines’ ownership, and we are happy to have secured 425 Lexington to serve as our world headquarters for at least another two decades.”
In early March, Hines announced that the building would be marketed for sale by Eastdil Secured and CBRE.
Eastdil Secured’s Senior Managing Director Douglas Harmon notes, “Simpson Thacher’s renewed commitment to 425 Lexington dramatically highlights the attractiveness of the asset while solidifying and stabilizing the long-term returns to an investor.”
Darcy Stacom, vice chairman of CBRE Investment Properties said, “425 Lexington is a gem in the market, and with the lease renewal, the investment fundamentals are befitting this trophy asset. This is an enormous vote of confidence in the long-term value of this Midtown icon.”
One of the newest and most prominent buildings in the Grand Central market, the 750,000-square-foot 425 Lexington Avenue, occupies the entire easterly block front between 43rd and 44th streets and is situated directly across from Grand Central Terminal and the Chrysler Building.
Simpson Thacher & Bartlett LLP is one of the world’s leading international law firms. The Firm was established in 1884 and has more than 850 lawyers. Headquartered in New York with offices in Beijing, Hong Kong, Houston, London, Los Angeles, Palo Alto, São Paulo, Seoul, Tokyo and Washington, D.C., the Firm provides coordinated legal advice and transactional capability to clients around the globe.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes 1,273 properties representing more than 514 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.
Currently, Hines manages 406 properties totaling 148.5 million square feet, which includes 78.3 million square feet for third parties.
With offices in 113 cities in 18 countries, and controlled assets valued at approximately $24.3 billion, Hines is one of the largest real estate organizations in the world. Hines is also a world leader in sustainable real estate strategies, with extensive experience in LEED®, ENERGY STAR®, BREEAM, Haute Qualité Environnementale and DGNB green building rating systems.
Visit www.hines.com for more information.