NEW YORK CITY-SJP Properties and law firm Proskaeur Rose madeMonday’sreports official on Tuesday with a formal announcementof a 406,000-square-foot, 20-year lease at 11 Times Square, about25,000 square feet larger than initially reported. The deal for 14floors of the 1.1-million-square-foot tower, which is scheduled forcompletion next month, is the first one signed there and isbelieved to be the largest Midtown office relocation in more thantwo years.

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“Proskauer is the type of world-class tenant we specificallytargeted for this building, and we are extremely confident that thefirm’s move to high-performance new construction will offer bothimmediate and long-term benefits,” SJP CEO Steven J. Pozycki saysin a release. The 40-story property is aiming for LEED Goldcertification.

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Allan Fagin, Proskauer’s chairman, says in a release that themove from 1585 Broadway “provides a platform for our future in thiscity and beyond, as we continue to expand our practice areas,enhance our capabilities and extend our global footprint.” He addsthat the building’s technology and sustainability features as wellas its central location and access to mass transit all were majorfactors in the firm’s selection of 11 Times Square.

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Stephen B. Siegel, chairman of global brokerage at CB RichardEllis, represented SJP in the transaction. He says in a releasethat Proskauer’s move “is a significant validation of both SJPProperties’ strategy of developing this world-class building onspeculation, and the flight of corporations to technologicallysuperior, energy-efficient office environments.”

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The law firm was represented by Siegel’s colleagues at CBRE,vice chairman Michael Geoghegan and EVP Stuart Eisenkraft. Davis& Gilbert served as legal counsel for SJP and Proskauerrepresented itself during the negotiations.

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According to the New York Post, which reported inJanuary that Proskauer and SJP had completed a term-sheet deal forthe space, starting rents are said to be in the high $70s persquare foot, slightly higher than the mid-$70s range stated earlierin both the Post and the New York Times. Rentswill escalate every five years.

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Proskauer says in a release that plans to move into the space in2011. At that time, 11 Times Square will feature a 50-by-20-foot,backlit sign, reportedly making Proskauer the first law firm in thecity to have its name prominently displayed at the top of itsheadquarters.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.