NEW YORK CITY-Media tenant Meredith Corp.,publisher of the Ladies’ Home Journal and other populartitles, is consolidating from two separate Grand Central Districtoffices into nine floors at Cohen Brothers Realty Corp.’s 805 ThirdAve. A source familiar with the deal tells GlobeSt.com the212,594-square-foot headquarters deal is for 10-plus years.

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Meredith is consolidating from 125 Park Ave., whereit occupies about 143,000 square feet, and 375 Lexington Ave. Themedia and marketing company, which plans to complete its relocationby late 2011, will anchor the 31-story office tower. According to arelease from Cohen Brothers, the Meredith lease brings 805 Third tomore than 90% occupancy.

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“This is a company that I’ve worked with on manyoccasions and have great admiration for, so when the opportunitypresented itself to bring Meredith to 805 Third as our anchortenant, I was determined to create the kind of corporateenvironment needed to get this deal done,” Charles S. Cohen Cohen,president and CEO of Cohen Brothers, says in a release. The twofirms have worked together via Cohen Brothers’ showroom and designcenter portfolio, in which Meredith’s Traditional Homedivision has often staged trade events.

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At the Bloomberg Real Estate Briefing eventThursday morning, Cohen offered some additional insights on thedeal as part of a panel discussion. “Quality tenants are in shortsupply” and demand is weak, Cohen said in response to a questionfrom moderator Rob Urban of Bloomberg News. “Nothing makes a dealcompetitive other than attractive pricing.” Asking rents at the525,000-square-foot property are in the mid-$50s per square foot,according to the New York Post.

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“As strategic adviser to Cohen Brothers’ Manhattanportfolio, we targeted a financially strong tenant to create aworld-class headquarters opportunity for 805 Third, and Meredithfit the bill perfectly,” says Bruce Mosler, co-chairman of Cushman& Wakefield. Mosler and C&W colleagues Arthur Mirante andDavid Glassman represented Cohen Brothers, while a C&W team ofEdward Weiss, Joseph Cabrera and Robert Thuss negotiated on behalfof Meredith.

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Meredith reportedly had planned a move and consolidation forsome time; in July, Crain’s New York Business reportedthat the tenant was on the verge of signing of a lease for morethan 200,000 square feet at another property near its 125 Park and375 Lexington sites. The lease at 805 Third brings Meredith aboutseven blocks north into the Plaza District instead, on the easterlyblockfront between 49th and 50th streets. It’s for the sixth floorand floors 22 through 29, and will include a TV studio for livebroadcasts.

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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.