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NEW YORK CITY-CapitalSpring LLC, the private equity firm, will relocate from 488 Madison Ave. into 9,734 square feet of office space at the 52-story 712 Fifth Ave. CapitalSpring signed the six-year sub-lease with JL Thorton Co.

CapitalSpring, was represented in the deal by UGL Equis, who said it was able to “aggressively negotiate a below market deal.” Dirk Hrobsky, who worked together with UGL Equis’ Jon Schulman, says in a statement “our goal was to deliver a real estate solution for CapitalSpring LLC that will accommodate future growth of the company as a high-image building with class A amenities.”

Hrobsky tells GlobeSt.com, “This project has been about a three year project, because they were in an executive suite, [and] then expanded into a somewhat short-term situation at 488 Madison.”UGL, he explains, did a short-term extension for CapitalSpring “to more effectively play the market as it was turning downward, and, as more supply was coming to the market, more sublease inventory.”Finally, UGL Equis “structured the long-term sort of more permanent solution at 712 Fifth. That negotiation took around four months, a lot of trading and re-trading back and forth, as the markets changed, and as outlooks were questionable,” says Hrobsky, who wouldn’t reveal the price per square foot, but did say, it was “roughly half of what the high was.”

A July market report from Cushman Wakefield reported that asking rents in Midtown were down 20.4 percent from $83.96 per square foot at midyear 2008 to $66.82 per square foot at midyear 2009.

Cushman said that heavily discounted sublease space has created a considerable differential between the costs of direct space and sublease space. They added that sublease space will continue to put pressure on both asking rents and taking rents.

The building, constructed from 1990-92, is also home to high-end retailer Henri Bendel. Gordon Ogden and Ben Mohr of Bynam Wood represented JLThorton..

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