Brookfield Properties landed its first lease at 660 Fifth Avenuefour years after taking over the struggling office tower of Kushner Enterprises and started a $400 million redevelopment projectthe lessor announced on Monday.
Financial services firm Macquarie Group took up 221,764 square feet over six floors of the building, formerly known as 666 Fifth Avenueto move its Americas regional headquarters from 125 West 55th Street, The Wall Street Journal reported for the first time. Brookfield did not respond to questions about the terms of the agreement.
The 39-story office building in Midtown was bought by Kushner – then primarily known as a New Jersey developer – for $1.8 billion in 2007a record price at the time, the New York Times reported.
However, the splashy buy soon turned south as the property was heavily indebted and lost some of its biggest tenants during the 2008 recession. Brookfield stepped in to take over the property in 2018, allowing Kushner to pay off the debt of 1.1 billion dollars and to buy out the co-owner Vornado Real Estate Trust. (Disclosure: Kushner Principal Nicole Kushner Meyer Is married to Joseph Meyerpresident and editor of Observer media.)
Brookfield then began a $400 million renovation of the building to add new mechanical systems, a new lobby and a new facade made of floor-to-ceiling glass panels, which he expects to complete this year. Besides Macquarie Group, Brookfield is also reportedly in talks to lease over 100,000 square feet in the property at Viking Global Investors.
“Macquarie Group’s commitment underscores not only the demand for premier New York office properties, but the understanding among leading global companies that the best talent wants to work in the best spaces,” said Mikael Nahmias, Brookfield’s senior vice president of leasing, who represented the landlord internally on the deal. “The investment we made to recreate the property has raised the bar for the next generation of workplaces.”
Macquarie’s new offices will feature a separate lobby entrance, 30,000 square feet of private outdoor terraces and a sign atop the building when it opens in 2024. Alongside Nahmias, Brookfield’s Hayley Shoener and Paul Masse represented Brookfield with Cushman and Wakefieldit is Bruce Mosler, Josh Kouriloff, Ethan Silverstein, John Santora, Mathias Li, Nicholas Dysenchuk and Howard’s Cross. JLLit is Pierre Riguardi, Frank Doyle, Joseph Messina, steven roter, Cynthia Wasserberger, Jessica Berkey, William McGarry, Caroline Palmer and Kristina Kopans represented the tenant.
C&W representatives did not immediately respond to a request for additional comment, and Macquarie declined to comment.
“This headquarters lease underscores New York City’s continued appeal as an unparalleled destination for the nation’s and the world’s top talent,” Riguardi said in a statement.
Celia Young can be contacted at [email protected].