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Tishman Speyer bars Carlyle from transferring lease to SL Green

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Tishman Speyer bars Carlyle from transferring lease to SL Green

Tishman Speyer Properties LP has blocked office real estate investment trust SL Green Realty Corp. from taking over Carlyle Group LP's lease at its 1 million-square-foot 520 Madison Ave. building in Manhattan, N.Y., The Real Deal reported.

SL Green and private equity firm Carlyle signed an estimated $100 million deal in August under which the former agreed to take over Carlyle's existing lease for nearly 120,000 square feet of space at the Tishman Speyer-owned property, in order to secure Carlyle as a tenant for its under-construction $3 billion One Vanderbilt office tower.

Tishman said it could not bring a competitor into 520 Madison Ave. as SL Green would sublease space in the building, coming into direct competition with Tishman's own leasing activities, the news outlet said, citing a rejection letter from the landlord to Carlyle.

In response, Carlyle filed a lawsuit on Oct. 16, arguing that the agreement does not bar it from handing over its lease to a company affiliated with a competing landlord, according to the report.

Carlyle's lease term at 520 Madison is set to expire in 2031. The 1.7 million-square-foot One Vanderbilt tower is scheduled to open in 2020.