EQT Partners has expanded its lease by more than 38,000 square feet at SL Green's Midtown, Manhattan office, 245 Park Avenue.
The signing gives EQT now 115,000 square feet in total, which includes full access to floors 32nd to the 34th floors in the 1.8 million square foot building, the New York Business Journal reports. This comes just two years after the private equity firm signed a 15-year deal to take 76,000 square feet at 245 Park.
The price per square foot was not revealed, but the NYBJ reported that SL Green is looking for an average of $70.81 per square foot for rent, with 263,000 square feet available.
Cushman & Wakefield represented both EQT and SL Green.
Currently, 245 Park Avenue is under redevelopment. These plans include adding a new lobby, a fitness center for tenants, a cafe and a golf lounge. Plus, improvements to the storefronts, windows, facade and plazas are underway.
SL Green first acquired the 44-story Class A building in 2022. The purchase price was not revealed, but the building had about $1.77 billion in mortgage and mezzanine loans at the time. In 2023, Mori Trust swooped in to buy a 49.9 percent stake in 245 Park in a deal that grossly valued the asset at $2 billion.
The major signing comes about a month after SL Green acquired Park Avenue Tower, an office building between 55th and 56th street, for $730 million from Blackstone.
Also, on Park Avenue, SL Green owns 500 Park Avenue, 450 Park Avenue, 280 Park Avenue, 100 Park Avenue and 125 Park Avenue.
Manhattan's recovery has been resilient since the pandemic. Year-to-date leasing through October in the market surged by 38 percent from the same period last year to 26.03 million square feet, according to a November report from CBRE. Additionally, Transwestern separately said that sublease space fell below pre-pandemic levels to 11.8 million square feet, as of November 1. Separately, as of mid-October, SL Green said that year-to-date leasing in its Manhattan office portfolio was 1.92 million square feet.