The trophy, 865,000-square-foot tower at 452 Fifth Ave. was sold by HSBC for $330 million in 2010.
NEW YORK CITY—In a major boost to Fifth Avenue commercial real estate and the Bryant Park submarket, PBC USA has inked a 548,000-square-foot lease with HSBC USA NA—a subsidiary of HSBC—at 452 Fifth Ave. The trophy, 865,000-square-foot Midtown tower was purchased by PBC from HSBC for $330 million back in 2010.
Subsequently, the financial institution committed to the property that serves as its North American headquarters. The new lease, pending lender consent, affords HSBC the opportunity to stay on Fifth Avenue and maintain its footprint on the base of the property.
Eli Elefant, CEO of PBC USA, along with Alicia Popper, SVP at PBC USA, represented the ownership in the negotiations. A JLL team led by Paul Glickman also represented PBC in this transaction, while another team from the brokerage firm led by Peter Riguardi represented HSBC. Rob Sorin of Fried Frank served as legal counsel to PBC in the transaction.
“The HSBC commitment speaks to the continued strength of the Bryant Park submarket and Fifth Avenue as a world class business address,” says Elefant. “It further solidifies our hands-on management approach as our team worked closely with the tenant throughout the process to accommodate the financial giant’s requirements.”
Adds Popper, “With the HSBC commitment, we continue to maintain 100 percent occupancy thanks to the efforts of ownership and our excellent brokerage partners. We are extremely proud of what we’ve been able to accomplish at 452 Fifth Avenue.”
Since acquiring the property, the ownership completed a multi-million-dollar capital improvement campaign, which included the redevelopment of a dramatic multi-floor lobby and entrance, the upgrade of all the high-rise elevators serving the tower floors, and the installation of new emergency power generators. Also, with the installation of two mission critical projects—new cooling towers and additional generators serving the top three penthouse floors—the building’s ownership created the most technologically-advanced building in the market.