Paul, Weiss, Rifkind, Wharton & Garrison signed one of the country’s largest office leases in 2023, taking 765,000 square feet at Fisher Brothers’ 1345 Sixth Avenue in Midtown Manhattan.
The law firm has added to that peak deal, signing a sublease for an additional 85,000 square feet at the property, the Commercial Observer reported. The expansion brings the law firm’s space at the property to a whopping 850,000 square feet.
Details of the sublease are sparse. It happened during the second quarter, according to a Savills market report. JLL brokers represented both sides of the sublease.
The space is on the 29th and 30th floors of the property, which were leased by Global Infrastructure Partners upon an expansion of its own in 2019. The square footage of that lease and the latest sublease match perfectly, suggesting GIP is the sublandlord.
A listing on Noah RE placed the asking rent of the sublease at $87 per square foot, slightly cheaper than the starting asking rent of $95 per square foot for GIP back in 2019. The term on the sublease listing was only until October, raising questions on whether or not Paul Weiss will find a way to enshrine its addition on a more permanent basis.
The law firm signed its large lease at 1345 Sixth Avenue towards the end of 2023, agreeing to take 18 floors of the repositioned office building. The firm previously occupied 550,00 square feet at RXR’s 1285 Sixth Avenue, across the way from the Rockefeller Center.
Prior to that lease, Fisher invested $120 million into the property for capital improvements, updating the exterior and adding an amenity floor and a public art installation. Ownership remains on the hook for $200 million in tenant improvements, largely dedicated to Paul Weiss; the law firm also secured $150 million in rent concessions.
Last month, Fisher announced that an affiliate of Blackstone acquired a 46 percent interest in the property. The investment gave the building a full capitalization of $1.4 billion, a jump from late last year, when S&P Global appraised the property at $896 million.
The landlords also refinanced the property with $850 million from the CMBS market, provided by Morgan Stanley, Citibank and JPMorgan Chase.
The 50-story, 2 million-square-foot building was 92 percent leased as of the refinancing.
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