A lot of what we do here in terms of observing the local green real estate scene is anecdotal, but I do believe there is some value in attempting to draw conclusions from the deals that are (or are not, as the case may be) taking place. Accordingly, in recent news from SL Green that it has inked a 45,000-square-foot, 10-year lease with Wells Fargo Trade Capital at LEED-EB Silver hopeful 100 Park Avenue, we noted that Wells Fargo was attracted not only to the property’s “higher profile,” but also its “pending LEED Silver certification.” The firm is a Wells Fargo subsidiary and offers supply-chain financing for domestic retailers; it will move into its new space on the tower’s third floor on April 1.
Even in this lousy market, SL Green is clearly seeing a return on its $72 million capital improvement program; it signed accounting firm BDO Seidman back in August to a 120,000-square-foot lease at $82 per square foot, which was the 15th largest leasing transaction in Manhattan during 2008. Upgrades over the past 18 months to the building’s infrastructure, lobby, elevators, and facade resulted in BOMA naming 100 Park Avenue its Best Renovated Building of the Year for 2007; asking rents at the tower are between $60 and $80 per square foot, depending on the floor.
As we noted previously, 100 Park Avenue was the first of Park Avenue’s International Style high-rises. Located at the corner of East 40th Street, the modern glass and steel tower was completed in 1949 and replaced the Murray Hill Hotel, which dated from 1883 and whose residents vehemently fought against the new development.