Canadian asset manager Sagard Capital has signed a 10-year lease to expand its office space at 280 Park Avenue in Manhattan, according to information obtained by The Real Deal. The firm, which manages $27 billion and is based in Montreal, will move into 40,000 square feet on the 33rd and 34th floors of the building. This marks a significant increase from its previous occupancy of 9,000 square feet on the 29th floor. The asking rent for the new space was $130 per square foot.
Newmark’s E.N. Cutler and Noel Flagg represented Sagard in negotiating the lease. Vornado Realty Trust’s Edward Riguardi and Alex Bedell, along with a CBRE team led by Peter Turchin and Gregg Rothkin, represented the landlords.
SL Green and Vornado entered into a joint venture for the property at 280 Park Avenue in 2011. In 2015, they completed a $150 million renovation that included major updates such as gut-renovating the lobby, installing new elevators, and upgrading other building systems.
In an effort to address financial obligations tied to the property, SL Green and Vornado contributed $100 million last year to extend the maturity date on a $1.1 billion loan secured by the building. The loan had previously been transferred to special servicing in December 2023.
By late 2023, occupancy at the property stood at approximately 93 percent. Other notable tenants include investment bank PJT Partners and private equity firm Antares Capital. Additionally, Elliott Investment Management leased about 149,000 square feet in the building last year.
The office tower occupies an entire block of Park Avenue between East 48th and East 49th streets and is located two blocks from Grand Central Terminal.
Representatives from Sagard Capital, SL Green, and Vornado did not immediately respond to requests for comment.
