Occupancy at LCOR’s LEED for Core and Shell Gold-certified 545 Madison Avenue has been creeping higher over the past year: we noted here at gbNYC when the 17-story tower crossed the 50-percent and 70-percent-leased thresholds. Now, Ogden CAP Properties – a Milstein family residential real estate investment concern – has signed a 10-year, 27,000-square-foot lease for 545 Madison Avenue’s entire fourth, fifth, and sixth floors, boosting overall occupancy past 80 percent: an achievement for a property that, a year ago, was still half vacant.
Although the great recession forced LCOR to drop its asking rents from the $70s into the mid-$60s per square foot, and caused leasing efforts to stall, the developer’s repositioning strategy is clearly paying dividends: LCOR reopened the 140,000-square-foot 545 Madison in 2008 aiming for 17 or fewer boutique financial services and law firm tenants. Indeed, the property’s 10,000-square-foot floor plates are prime for those types of tenants. But Ogden’s interest in three full-floor spaces was piqued after seeing LCOR’s fifth floor pre-built. “From that unit, Ogden could see the potential of the space,” LCOR principal David Sigman told the Commercial Observer.
545 Madison Avenue was the 27th LEED Gold certification awarded by USGBC here in New York City. The gut renovation of the original building – which dated from 1956 – was executed by Lend Lease and designed by New York City-based Moed de Armas & Shannon Architects. The project stripped the tower down to its structural frame and installed a new floor-to-ceiling glass curtain wall and high-performance HVAC, electrical, and mechanical systems.