The sublessor is fellow financial services giant UBS, which net leased the entire 31-story, one-million-sf building in 2004 but has yet to occupy any of the space. Built by the Lefrak Organization, NOC VII is part of that company's master planned Newport City, a 600-acre project on former waterfront rail yards with five million sf of office space, 1.5 million sf of retail space, two hotels and 2,500 residential units and room for more.
CB Richard Ellis repped both SG and UBS in the signing. The firm's Patrick Murphy, Ken Meyerson and Rachel Eberle worked out the details for SG Americas Operational Services Inc., a wholly owned operational subsidiary of SG. UBS was represented by CBRE's Robert Alexander, Howard Fiddle, Stephen B. Siegel, Gregg Rothkin and Cheryl Hardt.
SG is planning to relocate some of its support divisions currently based in Manhattan, taking the entire 20th and 21st floors of the massive class A structure. The company is planning to maintain its entire 490,000-sf New York headquarters presence at 1221 Ave. of the Americas.
"This location satisfies all of our client's requirements," says Murphy, executive managing director and partner of CBRE's New York tri-state suburban markets. He heads CBRE's suburban operations from the firm's Saddle Brook office.
"With this transaction, SG has diversified its real estate holdings in the area, reduced its overhead and will occupy one of the finest office towers in the region," Murphy says. For sublessor UBS, the signing is part of what Alexander terms "an aggressive marketing campaign" to get the leased but largely unoccupied building filled. Alexander and his team have the subleasing exclusive.
SG is also getting some help from the State of New Jersey. The company is getting a grant in an undisclosed amount under the state's Business Employment Incentive Program (BEIP), a new-job which rebates to companies the equivalent of 80% of state income taxes collected from employees for up to a decade. SG also stands to get additional employee tax credits, sales tax incentives and energy cost benefits because this city is a designated urban economic zone.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
