400 Capital Management, an alternative-credit investment firm that oversees $5.8 billion of assets, has signed a lease at Brookfield Properties’ 660 Fifth Ave. in New York.
The company is more than doubling its Manhattan office footprint with its new lease that totals 25,572 square feet (2,376 square meters) on the 27th floor of 660 Fifth, according to a statement Thursday. 400 Capital Management, which specializes in structured credit and is currently based in New York, will relocate to the new office in 2024.
“Fundamental workplace needs have shifted dramatically in recent years, and as a firm with plans to continue to grow, we recognize the value that accessible, modernized, high-quality space provides for collaboration, business development, recruitment and so much more,” Bill Sanders, president of 400 Capital Management, said in the statement.
Brookfield is nearing the completion of a $400 million redevelopment of 660 Fifth, which features a new lobby, elevators and facade. The 39-story building, spanning 1.25 million square feet, was originally built in 1957. Brookfield began redeveloping it in 2019 with the help of architecture firm Kohn Pedersen Fox and signed its first tenant, Macquarie Group, earlier this year.
Brookfield struck a deal for 660 Fifth Ave. with Kushner Cos., the real estate company run by the family of former presidential son-in-law Jared Kushner, in 2018. The Kushner family bought the property, formerly known as 666 Fifth Ave., in 2007 with more than $1.7 billion of loans and ran into trouble when markets cratered. They sought the help of potential investors including Anbang Insurance Group and an investment vehicle controlled by a member of Qatar’s ruling al-Thani family, but no deal was reached.
400 Capital Management’s move comes as Manhattan’s office market continues to see a supply glut. Since the pandemic began, availability rates have hit record heights. Now, many companies that implemented flexible remote-work policies in the pandemic are also reevaluating the need for real estate amid a potential recession. Tech giants, such as Meta Platforms Inc. and Amazon.com Inc., have cut back on planned office buildouts in New York.
Still, some companies are expanding in the market and are drawn to newer spaces. Brookfield’s Two Manhattan West tower on the far west side of Manhattan landed law firm Clifford Chance as a tenant earlier this year. HSBC Bank USA agreed to relocate its headquarters to a tower nearing completion in the Hudson Yards district.