Financial Services Firm York Capital Management Takes Entire Floor at General Motors Building
York Capital Management, a New York-based portfolio management and financial services firm, occupied 10,000 square feet in Midtown Manhattan, but required larger office space to accommodate the firm’s past growth and planned future growth. Due to new investment capital that the firm was mandated to manage, which required additional personnel as well as an enhanced corporate infrastructure, York Capital anticipated substantial new space needs. Savills has represented York Capital since 1995 on five separate transactions, and the financial services firm again leveraged Savills to implement a corporate real estate growth strategy.
York Capital had several requirements that were central to Savills property search, including the desire to be in a prestigious building with other premier financial services firms, and to be located on a low floor in a building with bolstered security. In addition, Savills worked to ensure prospective locations did not include tenancy by direct competitors of York Capital.
Savills secured the entire 17th floor of the prestigious 50-story General Motors building in Manhattan’s Plaza District. The building not only carried the caché that York Capital desired, but also offered one of the most developed, noninvasive security systems in New York City. The lease, which was executed in less than 30 days, also included improving the building’s common areas at the landlord’s expense. The new lease terms allowed York Capital to initially occupy 25,000 square feet, while maintaining flexibility to grow into the full floor of 35,000 square feet in two years. Savills convinced the landlord to immediately build the expansive space to the same high standards as the occupied space, so when York Capital wanted to move in, no new construction would be required.
Before the expiration of York Capital’s original 17th floor lease, the financial services firm had outgrown their space. Savills negotiated an additional 9,200 square feet expansion on the 21st floor, with terms that mirrored the original lease so both leases would terminate at the same time. Following the expansion, York Capital required off site “disaster recovery‟ space. Savills was retained once again to acquire space in another New York City location.
In 2014 Savills was once again retained by York Capital to renew its now 50,000 sf occupancy in the building over 1 year in advance of the lease expiring. This was successfully accomplished with additional rights beyond 2020.