Daily Real Estate News  |  June 22, 2007  |   REIT Pays Top Dollar for Manhattan Property
iStar Financial, a real estate investment trust that owns and manages commercial properties and lends money, has signed a lease in New York City that real estate professionals say is one of the most expensive ever completed in Manhattan for a space larger than 100,000 square feet.

iStar has rented the entire 35^th, 36^th, and 37th floors of the Grace Building, 1095 Avenue of the Americans, more than 130,000 square feet. The rents will begin at $132 per square foot, climb to $140 per square foot after five years, and jump to $148 for the final five years of the 15-year deal.

Generally tenants that are willing to pay such a rate don’t usually require that much space, brokers say.

Source: Real Estate Weekly, Daniel Geiger (06/06/07)