CME Group Hires Newmark Grubb Knight Frank and HDREP to Market NYMEX
CME Group explores sale, lease-back options for iconic Manhattan tower
NEW YORK, May 29, 2013
NEW YORK, May 29, 2013 /PRNewswire/ --CME Group (NASDAQ: CME), the world's
leading and most diverse derivatives marketplace, in partnership with its
strategic global real estate advisor Holly Duran Real Estate Partners LLC
(HDREP) of Chicago, has retained Newmark Grubb Knight Frank (NGKF) to explore
the sale of the NYMEX Building, the headquarters to the New York Mercantile
Exchange (NYMEX). The 16-story, LEED-certified building is located at One
North End Avenue overlooking the Hudson River immediately west of Brookfield
Place (formerly the World Financial Center) and Goldman Sachs Tower.
The company will continue operation of its NYMEX trading floor in New York
regardless of whether the NYMEX Building is sold. In the event of the sale,
CME may lease back a portion of the building, including the trading floor.
NGKF Vice Chairman Neil Goldmacher and HDREP's Holly Duran will investigate a
sale-leaseback scenario as well as the possibility of relocating NYMEX to
other properties in Lower Manhattan.
"CME Group remains committed to our floor based membership and open outcry
trading services in New York, which continue to be a profitable part of our
business and serve our customers well," said Jamie Parisi, CME Group Chief
Financial Officer. "The sale of the NYMEX building will help us continue to
reinvest in our core derivatives business, just as we did following the sale
and lease-back of office space in the CBOT building in Chicago last year.
Going forward, whether we decide to retain occupancy at One North End or
relocate within Lower Manhattan, we are committed to updating our New York
offices to reflect the innovation and quality of our CME Group offices around
James D. Kuhn, NGKF President and head of the firm's Capital Markets group,
and NGKF Capital Markets Senior Managing Director Jennifer Schwartzman, in
partnership with HDREP Principal Holly Duran and Associate Jeff Mulder, will
market the property for sale.
Duran said: "This is a modern, iconic office tower with extraordinary
infrastructure and systems. Accordingly, we expect strong competitive bidding
and a large pool of potential buyers, including potential end users."
Kuhn said: "This is an opportune time for CME Group to engage the market. With
modest yields in other asset classes and benchmark interest rates in the low
single digits, institutional investors are clamoring for the limited number of
trophy office assets that become available for sale in Manhattan."
CME Group acquired the NYMEX Building, along with the exchange, in 2008. NYMEX
has occupied the building since 1997. CME Group owns the building on a ground
lease from New York's Battery Park City Authority that expires in June 2069.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group
(www.cmegroup.com) is where the world comes to manage risk. CME Group
exchanges offer the widest range of global benchmark products across all major
asset classes, including futures and options based on interest rates, equity
indexes, foreign exchange, energy, agricultural commodities, metals, weather
and real estate.CME Group brings buyers and sellers together through its CME
Globex^® electronic trading platform and its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the world's leading
central counterparty clearing providers, which offers clearing and settlement
services across asset classes for exchange-traded contracts and
over-the-counter derivatives transactions. These products and services ensure
that businesses everywhere can substantially mitigate counterparty credit
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and
Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange
Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade
of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile Exchange, Inc.
COMEX is a trademark of Commodity Exchange, Inc. KCBOT, KCBT and Kansas City
Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri,
Inc. All other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products can be
found at www.cmegroup.com.
About Holly Duran Real Estate Partners
Based in Chicago, Holly Duran Real Estate Partners LLC (www.hdrealestate.com)
is a global real estate strategy and services firm dedicated to providing
innovative, cost-efficient solutions to commercial tenants. The firm has
negotiated over 15 million square feet of office, industrial and data center
leases in over 65 cities, 36 states and nine countries, managing transactions
and lease portfolios for clients ranging from small professional firms to
large multi-national organizations. HDREP provides a full scope of real estate
services, including brokerage, strategic advisory, investment sales,
acquisitions and dispositions, development, real estate finance and analysis,
real estate valuation and project management. HDREP represents more
futures-related business than any other real estate advisor in Chicago, in
addition to clients in the financial, legal and entertainment industries.
Clients include CME Group; Rosenthal Collins Group; TBA Global; Novation
Companies, Inc.; The Heico Companies, LLC; Levy Family Partners; MC Squared
Energy Services, LLC; FFastFill Inc.; ED&F Man Capital Markets Inc.;
BuzzMedia, Washington Wealth Management, LLC; and Wind Point Partners.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world's leading commercial
real estate advisory firms. Together with its affiliates and London-based
partner Knight Frank, NGKF employs more than 11,000 professionals, operating
from more than 340 offices in established and emerging property markets on
With roots dating back to 1929, NGKF's strong foundation makes it one of the
most trusted names in commercial real estate. Its integrated services platform
includes leasing advisory, global corporate services, investment sales and
capital markets, consulting, program and project management, property and
facilities management, and valuation services. A major force in the real
estate marketplace, NGKF serves the local and global property requirements of
tenants, landlords, investors and developers worldwide. For further
information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global
brokerage company primarily servicing the wholesale financial and real estate
markets. For further information, visit www.bgcpartners.com.
SOURCE CME Group
Contact: For CME Group: Damon Leavell, 212.299.2547,
email@example.com; or For NGKF: Mira Matic, 973.461.9005,
firstname.lastname@example.org; or For HDREP: Ellen G. Resnick, 773.929.9292;
312.399.9295, eresnick@crystalclearPR.com, Crystal Clear Communications
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