SL Green Realty Corp., under an estimated $100 million deal, has committed to take over Carlyle Group LP's existing office lease at 520 Madison Ave. in Manhattan, N.Y., in order to secure the private equity firm as a tenant for the $3 billion One Vanderbilt office tower that it is developing, Crain's New York Business reported, citing unnamed experts.
According to the sources, SL Green agreed to take over Carlyle's existing lease for nearly 120,000 square feet of space at the Tishman Speyer-owned property. Crain's, citing CoStar, reported that Carlyle's lease term in the building will run until 2031, approximately 10 years after it will move into One Vanderbilt.
SL Green's commitment could see the company negotiate a termination of Carlyle's lease agreement for 520 Madison Ave. or fill the office space with another tenant that would take on the remaining rent, the Aug. 13 report added.
Carlyle will reportedly be leasing 94,367 square feet of space at the One Vanderbilt tower. With the firm's addition as a tenant, SL Green announced that the 1.7 million-square-foot development is now 37%-leased, eclipsing its current occupancy target.