OfficeEquity_4Q19_Final

OFFICE EQUITY PRIVATE EQUITY OCCUPANCY REPORT NEW YORK | 4Q 2019

CONTENTS

Competitive Landscape

1

Most Notable Transaction of 4Q 2019

3

In the Spotlight

4

Office Market Snapshot

5

Important Credit Considerations

7

SELECT LIST OF LARGEST PRIVATE EQUITY FIRMS BASED ON AUM COMPETITIVE LANDSCAPE

40) 919 Third Avenue Stone Point Capital 41) 140 East 45th Street Cortec Group 42) 599 Lexington Avenue

21) 30 Hudson Yards KKR 22) 390 Park Avenue

1) 610 Fifth Avenue Hamilton Lane 2) 875 Third Avenue

Hellman & Friedman 23) 450 Lexington Avenue Warburg Pincus

Cerberus Capital Management 3) 860 Washington Street LG Capital 4) 55 Fifth Avenue Hermes GPE 5) 399 Park Avenue The Jordan Company Trilantic Capital Partners 6) 380 Lafayette Street Select Equity Group 7) 345 Park Avenue Blackstone 8) 650 Madison Avenue BC Partners 9) 320 Park Avenue Permira Advisors Kelso & Co. 10) 50 Hudson Yards BlackRock 11) 1166 Avenue of the Americas WL Ross & Co. 12) 79 Madison Avenue GI Partners 13) 277 Park Avenue CCMP Capital 14) 55 East 52nd Street General Atlantic Court Square 15) 1270 Avenue of the Americas Palladium Equity Partners 16) 299 Park Avenue

Welsh Carson Anderson & Stowe

American Industrial Partners

43) 65 East 55th Street

TowerBrook Capital Partners Oak Hill Capital Partners Avista Capital Partners

24) 485 Lexington Avenue Tailwind Capital Partners 25) 245 Park Avenue Ares Management Vestar Capital Partners MidOcean Partners 26) 1370 Avenue of the Americas Ardian 27) 52 Vanderbilt Avenue Platinum Equity 28) 510 Madison Avenue Cinven One Equity Partners 29) 375 Park Avenue Clayton, Dubilier & Rice Centerbridge Partners InvestIndustrial Pamplona Capital Management

44) 100 Fifth Avenue FirstMark Capital 45) 60 East 42nd Street Pine Brook Partners KPS Capital Partners 46) 1 Vanderbilt Avenue The Carlyle Group KPS Capital Partners 47) 295 Lafayette Street Thrive Capital 48) 535 Madison Avenue Bain Capital Aquiline Capital Partners 49) 402 West 13th Street Stripes Group 50) 412 West 15th Street Kimmeridge Energy Tikehau Capital Sentinel Capital Partners

30) 100 Park Avenue Arsenal Capital Partners 31) 31 West 52nd Street 32) 630 Fifth Avenue L Catterton The Riverside Company 33) 590 Madison Avenue Crestview Partners

MIDTOWN S

DOWNTOWN

Providence Equity Partners

Copenhagen Infrastructure Partners

51) 601 Lexington Avenue Apax Partners OrbiMed Advisors Siris Capital 52) 505 Fifth Avenue Kinderhook Industries 53) 1185 Avenue of the Americas EagleTree Capital 54) 888 Seventh Avenue TPG 55) 12 East 49th Street Advent International Rhone Group 56) 666 Fifth Avenue AEA Investors 57) 7 Times Square TZP Group 58) 40 Tenth Avenue Starwood Capital

Odyssey Investment Partners 34) 1290 Avenue of the Americas Neuberger Berman Group 35) 1325 Avenue of the Americas PAI Partners 36) 1114 Avenue of the Americas EQT Insight Venture Partners Partners Group 37) 410 Park Avenue Yorktown Partners 38) 745 Fifth Avenue Searchlight Capital Partners 39) 250 Vesey Street Brookfield Asset Management

AlpInvest Partners American Securities GoldPoint Partners

17) 1633 Broadway

39

New Mountain Capital

18) 712 Fifth Avenue CVC Capital Partners Riverstone Holdings Onex 19) 9 West 57th Street

Churc

Apollo Global Management Veritas Capital Sycamore Partners Lightyear Capital

20) 55 Hudson Yards Silver Lake

Sout

Vista Equity Partners

1 | Office Equity

W 72 St

Broadway

MIDTOWN

Central Park West

W 57 St

Fifth Ave

54

W 50 St

19

8

26

17

38

18

15

MID

35

33

48

Eighth Ave

43

34

31

W 42 St

53

Eleventh Ave

33

MIDTOWN MIDTOWN SOUTH

56

14

22

37

5 28

1

32

40

20

51

55 13

11

21

7

9

Park Ave 42

57

2

36

16 24

52

10

W 34 St

Ninth Ave

25

27

46

23

Fifth Ave

Tenth Ave

45

41

Seventh Ave

30

Third Ave

Sixth Ave

W 23 St

Madison Ave

58

50

3

Lexington Ave

12

49

Eighth Ave

W 14 St

44

MIDTOWN MIDTOWN SOUTH

First Ave

4

Third Ave

Fifth Ave

UTH

6

Houston St

47

Canal St

Delancey

Bowery

Broadway

St

E Broadway

MIDTOWN SOUTH DOWNTOWN

St

Cushman & Wakefield | 2

MOST NOTABLE TRANSACTION OF 4Q 2019

Technology Crossover Ventures (TCV) 7 Bryant Park 7 Bryant Park was developed in 2015 by Hines and wholly owned and anchored by Bank of China. Built on the southwest corner of Bryant Park, the office tower has received a number of architectural awards for forward-thinking construction and design, and has become one of the most sought-after assets in the neighborhood. The building’s tenants include Bank of China, Orion Resource Partners, Schroder Investment Management, and Venrock. Technology Crossover Ventures (TCV), one of the preeminent private technology investment firms in its field, more than doubled its Manhattan footprint with its new lease at 7 Bryant Park. TCV committed to 18,740 sf on the entire 24th and partial 23rd floors. The investment firm achieved an above-market concession package and will pay a starting rent north of $100.00 psf.

3 | Office Equity

IN THE SPOTLIGHT

45 Rockefeller Plaza Penthouse

Utilizing the vacancy left behind by Bessemer Trust at 45 Rockefeller Plaza, Tishman Speyer has created one of the most unique spaces available in Manhattan. The landlord re-purposed former mechanical space at the top of the building to create a one-of-a-kind penthouse opportunity with unparalleled 33-foot slab heights and two large usable terraces facing north and south. The space will offer spectacular views of St. Patrick’s Cathedral, The Rink at Rockefeller Center, Central Park and Downtown Manhattan. In addition to the space itself, tenants at Rockefeller Center have exclusive access to ZO, Tishman Speyer’s suite of amenities that include childcare, fitness and wellness classes, event space, coworking space, and lounges.

Floors: 40th and 41st mezzanine Total Size: 26,507 sf Asking Rent: $200.00 psf

40th Floor Test Fit | 19,942 sf

Cushman & Wakefield | 56 4

4Q 2019 OFFICE MARKET SNAPSHOT

At the time of publication, Cushman & Wakefield’s Market Research team tracked 15 private equity firm transactions this quarter. The breakdown is below: Midtown Fifteen leases were executed, accounting for 198,805 sf. The average taking rent was $89.52 psf—a 14.33% decrease from last quarter. Concessions for new leases averaged eight months of free rent and $125.00 psf in tenant improvement allowance.

MIDTOWN MIDTOWN SOUTH

W 23

Midtown South No new leasing transactions were tracked.

Eight

W 14 St

Downtown No new leasing transactions were tracked.

MIDTOWN SOUTH

DOWNTOWN

Houston St

Relocation Expansion Renewal

Canal St

*Financial terms and conditions of these transactions are kept in strictest confidence.

Bowery

Broadway

**Spring Mountain Capital included due to illiquid investments.

Church St

5 | Office Equity

South St

Broad

MIDTOWN

Madison Ave

Central Park West

NORDIC CAPITAL 535 Madison Avenue Partial 20th floor 5,835 sf

W 57 St THE CRANEMERE GROUP 152 W 57th Street Entire 42nd floor 10,830 sf

SARATOGA INVESTMENT CORP. 535 Madison Avenue Entire 4th floor 11,898 sf

Fifth Ave

Third Ave

MIDTOWN SPRING MOUNTAIN CAPITAL 650 Madison Avenue Entire 20th floor 12,861 sf BANNERRIDGEPARTNERS 641 Lexington Avenue Partial 18th floor 2,500 sf

W 50 St

Eighth Ave TRIMARAN CAPITAL PARTNERS 1325 Ave. of the Americas Partial 25th floor 3,038 sf

W 42 St

Eleventh Ave

ATLANTIC STREET CAPITAL 477 Madison Avenue Partial 11th floor 8,400 sf

ALTERIAN INVESTMENT PARTNERS 550 Fifth Avenue Entire 8th floor 5,935 sf

Park Ave

W 34 St

Ninth Ave

STELLEX CAPITAL MANAGEMENT 900 Third Avenue Entire 25th floor 18,305 sf

NEW LIGHT PARTNERS

Fifth Ave

Tenth Ave

PARTNERS GROUP 1114 Ave. of the Americas Entire 37th floor 31,285 sf

320 Park Avenue Entire 25th floor 15,361 sf

Seventh Ave

Third Ave

Sixth Ave

TAILWIND CAPITAL PARTNERS 485 Lexington Avenue Partial 23rd floor 14,206 sf

KPS CAPITAL PARTNERS 2 Grand Central Place Partial 39th floor 6,647 sf

t

Madison Ave

TECHNOLOGY CROSSOVER VENTURES 7 Bryant Park Partial 23rd & Entire 24th floors 18,740 sf

THE CARLYLE GROUP 1 Vanderbilt Avenue Entire 34th floor 33,034 sf

Lexington Ave

Ave

MIDTOWN MIDTOWN SOUTH

First Ave

Third Ave

Fifth Ave

Delancey

E Broadway

MIDTOWN SOUTH DOWNTOWN

Cushman & Wakefield | 6

IMPORTANT CREDIT CONSIDERATIONS Key business drivers that owners evaluate when determining security deposit

• Operational history

• AUM

• Investment/industry diversification

• Average investment hold period

• Size and depth of investment team

• Advisory fee structure on portfolio companies

Source: Tenant Risk Assessment

8 7 | Office Equity

Jeffrey R. Lovell 212 841 5994 jeffrey.lovell@cushwake.com

William T. Yeatman 212 841 7681 will.yeatman@cushwake.com

Winston C. Schromm 212 841 7873 winston.schromm@cushwake.com

Copyright © 2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.