Lobby at First Stamford Place

Citicorp North America, a Citigroup unit, has doubled its space at FSP to approximately 290,000 square feet, extending its lease of existing space through 2010 and committing to additional space through 2012. The bank is relocating and consolidating its asset management group, part of which had been at 7 World Trade Center in downtown Manhattan.

To help make room for Citigroup's expansion, a number of smaller tenants that were not fully utilizing the space they had under lease were contacted on behalf of ownership and paid to reduce or terminate their leases.

"Securing a larger and longer commitment by Citigroup while allowing other tenants to reduce or end their obligations enhances First Stamford Place's performance prospects," says Jeffrey H. Newman, executive vice president of W&M Properties, the acquisition, management and marketing arm of the Malkin family. "With this and several other recently concluded long-term leasing transactions, we raised First Stamford Place's direct occupancy rate from 91% to 99%, and took care of most of the lease expirations through 2002, providing security in the present economic environment."

Mr. Newman, who oversees the nearly 2.5-million-square-foot Wien & Malkin- led suburban office portfolio in Fairfield County, Conn., and Westchester County, N.Y., says W&M Properties' reputation for excellent tenant relations and the ability to execute complicated transactions quickly persuaded Citigroup officials that First Stamford Place could accommodate consolidation of its asset management group in a timely, efficient and cost-effective manner.

"Proactive property management includes staying informed of the general business climate and conditions affecting the market, as well as keeping attuned to the business of each particular tenant, so as to anticipate and seize opportunities," says Mr. Newman. "Our regular tenant outreach initiatives give us a good sense as to which tenants are amenable to changes in their lease terms and obligations."

First Stamford Place is situated within Stamford's Enterprise Zone, a distinction the complex shares with only one other CBD Class-A building, Metro Center, which also is part of the W&M portfolio. Tenants located within the Enterprise Zone qualify for an 80% abatement of real estate and personal property taxes on all leased space for five years, for a minimum annual savings of $2.50 per square foot, and receive a 25% credit against State of Connecticut corporate income taxes for ten years.