By Hiten Samtani on July 11, 2013.
Updated, 12:10 p.m., July 12: Spanish construction firm Dragados, a major player in New York City public works projects, is moving from the Times Square area to Columbus Circle. Dragados opted to take 22,437 square feet at SL Green Realty’s 810 Seventh Avenue, according to CompStak data, and will move out of its existing offices at L&B Realty Advisors’ 500 Fifth Avenue.
The 15-year deal at the 41-story,748,0230-square-foot office building on West 53rd Street will see Dragados pay rents starting in the mid-$40s per square foot for the entire ninth floor. SL Green was asking rents of $52 per square foot for the space, the CompStak data show. In comparison, a recent lease that the University of Oxford signed at the 687,565-square-foot 500 Fifth Avenue was in the mid-$60s per square foot range.
An SL Green representative confirmed the deal, but deferred to director of leasing Steven Durels for further comment. Durels could not be reached immediately for comment. Marc Miller of Murray Hill Properties represented Dragados on the deal, and said they were a longtime client of his, but declined to comment further.
Dragados – a subsidiary of construction giant Actividades de Construcción y Servicios — achieved some notoriety last August, when it was sued by fellow Spanish construction firm Judlau Contracting for alleged financial mismanagement during a joint venture project to expand the Long Island Rail Road to Grand Central Terminal. Dragados’ failure to disclose financial issues, Judlau claimed, cost the venture $250 million.
In 2007, Dragados paid $150 million to acquire Secaucus, N.J.-based construction company Schiavone Construction and cash in on the public works projects boom in New York City, according to the New York Times. Along with the LIRR project, Dragados is also involved in the construction of the 72nd Street station for the new Second Avenue subway and the extension of the No. 7 subway line.
When asked if a replacement tenant had been found for Dragados’ 14,116 square feet on the 37th and 38th floors of 500 Fifth, Cushman & Wakefield’s Harry Blair, who oversees leasing at the building, declined to comment.