Amazon closed on a 330,000-square-foot lease at Property Building Corp’s 10 Bryant Park, marking one of the largest Midtown office leases since the pandemic.
Property & Building Corp announced in a filing on the Tel Aviv Stock Exchange that Amazon signed a 15-year lease to take over floors 3 through 11 of the tower’s main building. The tech giant will replace space vacated by former anchor tenant HSBC.
The deal signals positive momentum for Midtown’s office market. More employers such as Amazon are requiring employees to return to the office. Few developers have sought to build new office towers since the pandemic, limiting the new supply of high-end office space.
Last year, the New York Post reported that Amazon was in talks to lease space at 10 Bryant Park. The 30-story building neighbors the Lord & Taylor building that Amazon purchased in 2020 for $1.2 billion and uses as its Manhattan headquarters.
Amazon will pay $29.5 million per year in rent, according to the filing on TASE. After five years, the rent will go up to $32.2 million and in ten years, the rent will increase to $34.8 million.
Amazon also has the option of expanding its space by 145,000 square feet at a smaller building on 39th street behind 10 Bryant Park, the filing states. That building is also owned by PBC.
Amazon’s lease is the final chapter in a remarkable turnaround story for 10 Bryant Park, a building formerly known as the HSBC Tower.
PBC acquired the 30-story tower for $330 million, or $381 per square foot, in 2010 from HSBC. The owner put in more than $100 million in renovations.
PBC listed the tower for sale in 2021. Some of the largest firms in New York City bid on the tower, including Waterman Clark, the German fund Commerz Real, the Chera family’s Crown Acquisitions and Hines.
Andrew Chung’s Innovo Property Group submitted the winning bid of $855 million. Chung’s investor deck showed that after one to three years, he planned to sell the property or recapitalize it at a valuation of $1.2 billion.
But Chung failed to close. PBC opted to refinance its debt and renovate the building. It closed on a refinancing with JPMorgan in 2022. Last year, it landed $385 million in financing from the Israeli bond market, replacing its loan from JPMorgan.
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