Key Takeaways
- • Public Pension Capital signed a 12-year direct lease for 19,683 square feet on the entire fourth floor of 500 Park Avenue in Midtown East, representing a significant expansion from its existing 12,044-square-foot footprint occupied since 2012.
- • The private equity fund secured space in a 40-story, 142,500-square-foot landmark building designed by Skidmore, Owings & Merrill and originally constructed as office space for Pepsi-Cola in 1961, which was landmarked by the city in 1995.
- • Morgan Stanley Prime Property Fund retained ownership of the asset while leasing to PPC; JLL represented the landlord and Savills Studley represented the tenant in the transaction.
- • The expansion demonstrates sustained demand for premium office space on Park Avenue among alternative investment managers, with other tenants in the building including hedge funds Magnetar Capital and Solar Capital.
Summary
Public Pension Capital, a private equity fund, has committed to a long-term expansion at one of Manhattan's most prestigious office addresses. The firm inked a 12-year direct lease last week for the entire fourth floor of 500 Park Avenue in Midtown East, totaling 19,683 square feet. This transaction marks a departure from PPC's previous arrangement and signals continued confidence in the Park Avenue market.
PPC had occupied 12,044 square feet on a sublease from Caxton Associates, a trading and investment firm, since 2012. The new direct lease nearly doubles the firm's footprint and represents a full commitment to the fourth floor. Asking rent was not disclosed in the transaction. The deal was negotiated by Frank Doyle, David Kleiner, and Harlan Webster of JLL on behalf of the landlord, Morgan Stanley Prime Property Fund, while David Goldstein and Mike Mathias at Savills Studley represented PPC.
The 40-story building at 500 Park Avenue is an institutional-grade property with significant architectural and historical pedigree. The commercial portion of the tower was originally built for Pepsi-Cola in 1961 and designed in the International Style by Skidmore, Owings & Merrill. In 1981, the then-owner Equitable Life Assurance Society expanded the structure into a mixed-use tower with 56 residential condominium units occupying floors 12 through 40. The city designated the Pepsi-Cola building section as a landmark in 1995, recognizing its importance as a post-modern architectural asset.
The building maintains a premium tenant roster that reflects its standing in the alternative investment community. Other office occupants include hedge funds Magnetar Capital and Solar Capital, as well as Friedland Properties. A 55-seat theater called the Park Avenue Screening Room operates on the ground floor. The expansion by Public Pension Capital underscores sustained institutional demand for Class A office space in the Park Avenue corridor among alternative asset managers.
PPC had occupied 12,044 square feet on a sublease from Caxton Associates, a trading and investment firm, since 2012. The new direct lease nearly doubles the firm's footprint and represents a full commitment to the fourth floor. Asking rent was not disclosed in the transaction. The deal was negotiated by Frank Doyle, David Kleiner, and Harlan Webster of JLL on behalf of the landlord, Morgan Stanley Prime Property Fund, while David Goldstein and Mike Mathias at Savills Studley represented PPC.
The 40-story building at 500 Park Avenue is an institutional-grade property with significant architectural and historical pedigree. The commercial portion of the tower was originally built for Pepsi-Cola in 1961 and designed in the International Style by Skidmore, Owings & Merrill. In 1981, the then-owner Equitable Life Assurance Society expanded the structure into a mixed-use tower with 56 residential condominium units occupying floors 12 through 40. The city designated the Pepsi-Cola building section as a landmark in 1995, recognizing its importance as a post-modern architectural asset.
The building maintains a premium tenant roster that reflects its standing in the alternative investment community. Other office occupants include hedge funds Magnetar Capital and Solar Capital, as well as Friedland Properties. A 55-seat theater called the Park Avenue Screening Room operates on the ground floor. The expansion by Public Pension Capital underscores sustained institutional demand for Class A office space in the Park Avenue corridor among alternative asset managers.
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