'Absolut Sixth Avenue'

Real Estate Weekly, July 25, 2001 by Elaine Misonzhnik

According to published reports, Absolut Vodka, one of the world's most famous alcohol brands, is opening a new office in New York City. Last week, Absolut signed a. long-term lease for 10,059 SF at 1370 Sixth Ave. for its recently created U.S. marketing division, Absolut Spirits.

Gordon Ogden, managing director of Byrnam Wood, LLC, who negotiated the deal on behalf of the tenant, says that the firm's new offices offer good views of Central Park and a lot of open, airy space. Absolut has considered several buildings, including the Carnegie Hall Tower and the Metropolitan Tower Building, in an effort to find space that would give it an appropriate image at a reasonable price.

"In Sweden there are not that many tall buildings, so I think they liked the idea of being on a tower floor," Ogden said. "And the image they were looking for obviously needed to be a positive one, which 1370 Sixth Ave. gives them, but not in an ostentatious way."

Paul Amrich and Mitchell Konsker, of Cushman & Wakefield, served as the brokers for the landlord, the Stellar Management Company, and they agree that one of the building's principle attractions is its views.

"It's got spectacular views on all four sides, of Central Park, of Hudson, the East Side, and the West Side," Konsker said. "They wanted a North American presence with a prestigious building that offered a prestigious location and views of the Manhattan skyline."

"Another reason that they chose our building is that in comparison with other buildings like these it is seen in the marketplace as a better value. The rent averaged in the low $80's over ten years," added Amrich. "They will start construction on the space in about a month."

Absolut's permanent offices will be located on the 30th floor of the tower, which is currently being custom built. The project should be completed in about six months, during which time the marketing division will be occupying the 11th floor of the building. According to Ogden, the lease is priced in the mid-70's and is for a 10 to 15-year period, "depending on what options Absolut will exercise." There is a possibility the company will triple its space over the next few years, taking another full floor.

"They liked the space -- it's open and airy, which lands itself to good light views," Ogden said. "But unlike other buildings, the transaction was also a favorable one in terms of rent and options toward Absolut."