Bank close to deal for 160,000 s/f at 7 WTC

Real Estate Weekly, Nov 15, 2006 by Daniel Geiger

ABN AMRO is close to leasing 160,000 s/f at 7 World Trade Center. Speaking on condition of anonymity because the deal has not yet been completed, a source indicated that the international bank was on the verge of taking floors 30 through 33 at rents just below $60 psf.

ABN AMRO currently occupies space at 55 East 52nd Street but in recent months had been looking to relocate downtown. The insurance firm Aon, which had also been a tenant at 55 East 52nd, made a similar relocation in April, moving into 220,000 s/f at 199 Water Street. Market experts say that ABN AMRO undoubtedly was impressed by the success Aon had subleasing the 275,000 s/f it had left behind in the building--a fact that may have added to its decision to go through with the current lease at 7 WTC. Aon subleased the bulk of its space last month to two tenants, the financial advisory, Evercore Partners, and law firm, Duff Phelps, which took 125,000 s/f and 62,000 s/f respectively.

The deal, if it closes, will be part of a number of leases in the past year that have brought 7 WTC from being totally vacant to nearly fully occupied. The New York Academy of Sciences took 40,000 s/f in December 2005 and the financial planning firm Ameriprise Financial took 20,000 s/f in January 2006, but the tower slipped into a leasing lull soon after that prompted some to question whether the millions of square feet of office space planned for the WTC site was financially viable.

As much as 7 WTC stoked that debate, it also put it to rest in recent months as the building again began to attract tenants. The CB Richard Ellis leasing team representing the building signed leases with media company Mansueto Ventures for 40,000 in July, law firm Darby & Darby for 80,000 s/ f in August, and Moody's Investors Service in September for 600,000 s/f bringing the 1.7 million square feet building well past the halfway mark in leasing.