AIG Subsidiary Leases Another 77,000 SF

The lease term for the expansion space is concurrent with Nufic's existing lease, which runs through 2012, according to information released by the Edison-based Mack-Cali. Further terms were not released; similar space at the site and competitive buildings in the market has been commanding numbers in the $40-per-sf range.

The signing leaves just 100,000 sf still available, or less than 1% of the building's total rentable space. That availability is currently referenced on Mack-Cali's website with an asking rent listed as "negotiable."

Nufic had earlier expanded its presence at 101 Hudson in late 2005, signing a seven-year, four-month deal. Then, as in the latest expansion, the tenant was represented by brokers Lewis Miller and Andrew Sussman of CB Richard Ellis.

"AIG and its subsidiaries are among our leading tenants," says Mitchell Hersh, Mack-Cali's president and CEO, noting that American Home Insurance, another AIG subsidiary, had previously leased more than 117,000 sf at the REIT's 5 Wood Hollow Rd. in Parsippany. "Over the past dozen years they've continued to expand their space with us at properties throughout our portfolio."

Merrill Lynch continues to occupy approximately one half of the signature building, which is commonly referred to locally as "the Merrill Lynch building." Other major tenants include PricewaterhouseCoopers, the National Stock Exchange and Lehman Brothers, with the latter having expanded by 72,000 sf just this past summer to occupy a total of more than 270,000 sf.

The asset, which sits across the Hudson River from Downtown Manhattan, has been in Mack-Cali's portfolio for not quite three years. As reported by GlobeSt.com, the REIT acquired 101 Hudson in the first half of 2005 for $329 million, or about $275 per sf, from a partnership of LCOR, the State Teachers Retirement System of Ohio and Merrill Lynch.