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550 Madison Ave. Image courtesy of CommercialEdge
Olayan Group has signed a 144,000-square-foot lease agreement with private investment advisory firm Clayton Dubilier & Rice at 550 Madison Ave. in Midtown Manhattan.
Fried Frank Partners Robert Sorin and Valerie Kelly, along with Special Counsel Danielle Frank, brokered the agreement on the ownership’s behalf.
The 852,796-square-foot property was completed in 1983 and acquired by Olayan back in 2016 for $1.4 billion, in a transaction backed by a $570 million loan, the same data provider reveals.
READ ALSO: Leasing Activity Animates Slow Manhattan Office Market
Clayton signed a lease for more than 10 years to relocate from its current 70,000-square-foot office space at the Seagram Building, CommercialObserver reported. The company will occupy the 18th through 22nd floors, as well as the 26th floor, resulting in a doubling of its current New York City footprint.
According to the same source, The Olayan Group has recently invested $300 million in the renovation of its 550 Madison Ave. office building. The revamps included upgrading the retail spaces, facade and public garden.
The renovated property now features 14-foot ceiling heights and column-free floorplates, food and beverage options, shared conference rooms, as well as fitness and wellness facilities, as previously reported by Commercial Property Executive.
Manhattan’s high rental rates
Clayton Dubilier & Rice will be relocating its headquarters to the 41-story office building, joining the existing tenant roster comprising landlord Olayan Group, Corsair Capital and Sarock Music Productions, according to CommercialEdge. Last year, the owner also signed a 71,757-square-foot lease with French luxury design house Hermès.
According to the latest CommercialEdge report, the space Clayton Dubilier & Rice leased was the highest-ranked listing in the borough as of May, with a price of $210 per square foot.
The report also indicates that Manhattan maintained its position as the most expensive office rental market, ending last month with an average asking rate of $73.57 per square foot. Additionally, the office vacancy rate in the area remained close to the national average of 17 percent.
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