Bloomberg L.P. has exercised an option to extend its leases covering 188,608 square feet of office space at 731 Lexington Avenue.
The leases were scheduled to expire in 2015. The lease extension is for a term of 5 years.
Alexander’s, Inc. (NYSE: ALX), the real estate investment trust with properties that are leased and developed by Vornado Realty Trust, reported that it is currently in negotiations with Bloomberg to determine the rental rate for the extension period.
Bloomberg L.P. accounted for $67,488,000 and $65,938,000, or 45 percent of Alexander’s total revenues in each of the nine-month periods ending September 30, 2014 and 2013, respectively. On September 30, 2014, Vornado owned 32.4 percent of Alexander’s outstanding common stock.
On February 28, 2014, Alexander’s completed a $300 million refinancing of the office portion of 731 Lexington Avenue. The interest-only loan is at LIBOR plus 0.95% and matures in March 2017, with four one-year extension options.
Designed by Cesar Pelli & Associates, 731 Lexington Avenue is constructed entirely of glass and steel, with an 11-story building on Third Avenue connected by a winter garden to a 55-story tower along Lexington Avenue. The 55 stories consist of 1.3 million square feet, with 900,000 square feet of office space and 160,000 square feet of retail. 105 luxury condominiums occupy the top of the Lexington Avenue tower from floors 31 to 55.