Giant hedge fund manager with hush-hush paint leases in renovated NYC office building

Manhattan’s office market continues to surprise with unexpected new leases and expansions — and now, a highly unlikely move that no one saw coming.

Bridgewater Associates, the world’s largest hedge fund manager, has signed a deal to open its first office in Manhattan. The Westport-based firm closed on a quiet, 60,000-square-foot lease at 295 Fifth Ave. Late last week, Realty Check learned.

The former textile building occupies the entire east block between West 30th^th and West 31st^St the streets. Owners Tribeca Investment Group (TIG), PGIM Real Estate and Meadow Partners spent $350 million to redevelop the century-old, 700,000-square-foot property for modern office use. Improvements include a new, two-story penthouse, a ground floor patio, terraces and hospitality amenities.

Bridgewater’s Manhattan expansion follows a modest downsizing reported 18 months ago, which cut 100 jobs out of 1,300. It will keep most of its employees in Connecticut, but its move to Manhattan marks its first location outside of Connecticut. the state. CEO Nir Bar Dea, who succeeded founder Ray Dalio, has taken other steps to change the firm’s insular culture.

The negotiations were first reported by Bloomberg a few weeks ago, but the deal was not closed. The amount of the lease was not known until now. No one would talk to us, including brokers JLL, who rep Bridgewater and CBRE, who paid back the landlord.

Bridgewater’s lease reflects a sea change in Midtown South’s leasing dynamic.

A new CBRE report finds the district has “evolved into a more balanced rental market” that includes financial and legal tenants as the tech industry, long the dominant rental sector, retreats.

The survey by Michael Slattery and Jared Koeck says the more diverse industries hunting in Midtown South “is a return to what was typical before the technology takeoff in 2014-2019.”

Improvements in supply and the addition of amenities “will now benefit a wider mix of tenants”, CBRE says. And as availability tightens in trophy properties across Manhattan, “Midtown South is poised to capture the spread of demand.”

Leasing activity in the technology sector in the submarket, which peaked at 46% in 2019, gradually declined from 2021-2023 and stands at just 17% so far this year.

The report notes that Midtown South’s mostly older properties appealed to tech firms’ preferences for non-glass and non-steel buildings, and for “non-corporate vibe” features such as exposed ceilings, polished concrete and exposed brick. .

Demand drove 5.8 million square feet of new construction – which includes SL Green’s 1.4 million square foot One Madison – and 13.3 million sf of renovations.

Supply improvements “now benefit a more even industry mix”, CBRE said.