Apax Partners L.P.

Client Situation

Apax Partners L.P. is a London-based, independent global private equity partnership with approximately $20 billion in assets. Apax had an impending lease expiration 2 years hence and was facing the unenviable thought of going through a renewal arbitration proceeding. Apax had a unique, trophy-quality full floor at the top of the building with exceptional 360 degree views but needed upgrades to its slightly dated installation. 601 Lexington Avenue is tenanted by two large law firms and a number of growing financial firms that desired Apax’s 30,000 floor plate in this prestigious building.

Consideration Analysis

Apax retained Savills Studley to help them explore the market early with the goal to avoid going to arbitration. Apax required Class A amenities and were accustomed to spectacular views which limited the pool of alternatives. Savills Studley uncovered a handful of both on and off market opportunities that fit Apax’s requirements. Savills Studley then narrowed down the alternatives and it turned out that the top floor of a quality Third Avenue building could accommodate them.


Despite the market opportunities created by Savills Studley, Apax ultimately decided they couldn’t recreate the prestige and overall quality of their existing space at a price point compelling enough to warrant a costly relocation. Savills Studley was able to convince the landlord that they would be at a strategic disadvantage in an arbitration based on the language of the renewal clause and our valuation techniques. As a result, Savills Studley utilized this leverage to negotiate for a favorable rent and generous economic concessions so that renovations to the existing space could be performed.

Summary Information

  • Property: 601 Lexington Avenue, New York, NY
  • Transaction Size: 31,400 SF
  • Transaction Type: Renewal
  • Service Line: Office