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NEW YORK CITY-Investors Bank & Trust has signed for 21,994 sf at 33 Maiden Lane, GlobeSt.com has learned. The value of the deal is $10 million over the next 10 years. According to Insignia/ESG associate Mike McKenna, the bank, which still holds 7,800 sf of space at 600 Fifth Ave., was looking to grow.

Fueling that growth was the bank’s desire to purchase a division of Chase that handled securities processing and custodial accounts, says McKenna, who–along with Tim Halloran of Insignia’s Boston office–represented the bank in its search. That acquisition took place late last year. The division’s Downtown location helped focus the space search there. “It made sense that Downtown would work,” said McKenna in an exclusive interview. “The Chase division is only a block away from 33 Maiden Lane.” Also fueling the move was the client’s desire for cheaper space.

Negotiations began for the full eighth floor, at the time subleased by IBM to a securities tenant, which ultimately was unable to move in the needed timeframe. An initial lease was signed at the end of February but was contingent upon the delivery of the space. “There were three rounds of penalties,” reports McKenna. “If we missed March 1, there would be a free day for every day missed. If we missed April 1, there would be three months of free rent. On April 30 we had the right to cancel the deal.”

Building ownership–Merit US Real Estate Fund II–came back to McKenna just prior to the second break with an alternate offer for a full floor that was leased directly by IBM. Investors signed a lease modification for the new space April 12. “It was a tense two weeks prior to April 12,” recalls McKenna.

Terms were lower than the $49 per sf asking rate, says McKenna, “and there’s an option for an additional floor.” Thrown into the mix was a three-month free rent agreement, and the owner performed demolition and other prep work. McKenna estimates the TIs are worth as much as $5 per sf.

Alan Roth of the Witkoff Group, which holds the management contract, spoke for building ownership. McKenna says that Investors’ existing space at 600 Fifth Ave. just went on the market for sublet.

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