For lease: office with river views — and Madoff's stigma

Published: Thursday, July 9, 2009 8:26 p.m. MDT
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When the scandal broke, news crews and burned investors flocked to the 34-story skyscraper — shaped like an open lipstick tube — to measure the financial wreckage. They didn't get far: Madoff's firm had been sealed off from the public by an army of FBI agents, federal regulators and a trustee appointed to liquidate the business assets.

Since then, the trustee has sold one of Madoff's legitimate trading operations to a new broker-dealer firm that took over the 18th floor. A staircase connecting the 18th and 19th floors will be removed, Freeman said.

As for the 17th floor, trustee Irving Picard wrote in court papers that the FBI "has advised me that they will require access to the space until, at least, approximately July of 2010." It also wanted to continue using a leased Xerox copying machine there. The cost will be covered by an industry group that compensates victims of securities fraud.

Sharing the 17th floor in separate office space is a discount brokerage headed by Wall Street veteran Muriel Siebert, the first woman to buy a seat on the New York Stock Exchange in 1967 and the only tenant allowed a dog. Siebert had a sublet with Madoff and is now paying rent to the trustee.

What remains is the 16,182-square-foot 19th floor. A bankruptcy judge recently authorized the trustee to cancel the Madoff lease there through 2012 with landlord Metropolitan Real Estate Investors, creating the vacancy in a sagging commercial real estate market.

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Freeman wouldn't say what Madoff paid in rent, adding that no price has been set for the floor. There have been some feelers, but no firm offers.

Any takers who don't remodel, he said, "will certainly have to like dark colors."

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Image
Bebeto Matthews, Associated Press

Building manager Russell Freeman walks through office space Bernard Madoff had used.

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