The MetLife Building, a crown jewel asset of the Grand Central-East Midtown office district, is putting all its assets under one ownership and management roof, Realty Check has learned.
In a move that surprised industry-watchers, CBRE has taken over the triple crown of office tower assignments — playing the role of property manager, asset manager and leasing agent.
The commercial brokerage and service firm succeeds Tishman Speyer’s roles at the Irvine Company’s 3 million square-foot tower, officially at 200 Park Ave. Tenants got the news in an internal memo this week.
CBRE will now oversee everything at the iconic skyscraper, from long- and short-term financial strategizing to keeping the floors clean. In addition, CBRE renewed its 180,000 square-foot lease into 2037.
The deal marks the end of Tishman Speyer’s nearly 20-year investment in 200 Park Ave., which it bought in 2005 for $1.7 billion. It later brought Irvine in as a joint venture partner and gradually reduced its equity to a small percentage over time.
A Tishman Speyer spokesman said, “We are immensely proud of our stewardship and redevelopment of 200 Park Ave. and the significant returns we achieved for our investors.
“The Irvine Company informed us they will be exercising their contractual right to buy our remaining equity and take control of the property as per our 2014 joint venture agreement. We are grateful for their partnership and wish them all the best for the future.”
Irvine owns 54 million square feet of premium office space nationwide, but 200 Park Ave. is its only Manhattan commercial holding. Tenants also include Metropolitan Life Insurance Company’s headquarters and law firms Gibson, Dunn as well as Winston & Strawn.
Confounding prevailing wisdom that only brand-new, “class triple-A” properties can thrive in today’s market, the 62-year-old tower once known as the Pan Am Building is 97% leased.
Its success is in part due to sustained commitment to modernization and meeting 21st Century needs.
Mary Ann Tighe, a leader of the CBRE leasing team, commented, “Tishman Speyer is a class act. They spearheaded a $200 million upgrade that brought wonderful hospitality features to the building, including major restaurants, redesigned lobby and a health and wellness center.”
She added, “What’s exceptional about 200 Park Ave. is its scale. More than 8,000 people come to work here every day. It’s a crucial component of the Grand Central transportation hub.”
The future of 200 Park will include “a large focus on sustainability which is very important to the Irvine and to CBRE,” Tighe added.
Tishman Speyer’s exit made the management change to CBRE a logical step, sources said. CBRE and its predecessor companies, Insignia/ESG and Edward S. Gordon Company, have called 200 Park home for 37 years.
“We’re thrilled to work alongside Irvine Company to create the next chapter of the building’s remarkable history, said CBRE tristate advisory services president Matt Van Buren.
CBRE oversees $144 billion in commercial assets worldwide.
Asset management is a high-stakes role that includes both long-term and day-to-day oversight of a property’s cash flow, capital structure and debt.
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