Water Island Capital is expanding as it rises within 41 Madison Ave.

The investment firm just inked a deal for 9,150 square feet, which encompasses the entire top floor of the building between East 25th and East 26th streets. The 42nd-floor office features beautiful views of Madison Square Park....

... Water Island wanted to stay in the area because so many of its employees live in the neighborhood, according to Jeffrey Peck, a broker at Studley who represented the tenant along with colleague Daniel Horowitz. Mr. Peck added that his client was also drawn to the deal because its executives were impressed with how Rudin manages the property.

Rudin was represented in-house.