Large private-equity firm Lone Star Funds is more than doubling its space at upscale Midtown office building 888 Seventh Ave.

The firm is growing from about 22,000 square feet in the 47-story tower to roughly 50,000 square feet, sources say. The expansion is being arranged to coincide roughly with the expiration of its current office leases in about a decade. The company will pay rent in the mid-$80s per square foot for the new space.

CBRE broker Harly Stevens represented Lone Star in the deal. Jared Solomon, an in-house leasing executive at Vornado, the building's landlord, represented ownership.

The deal will allow the Texas-based investment firm to expand both its own offices and those of subsidiaries that co-occupy the space, such as Hudson Advisors, a firm that provides asset-management services for Lone Star's $70 billion portfolio.

The 880,000-square-foot building is a popular spot for investment firms. The hedge fund Hutchin Hill Capital recently leased 40,000 square feet, the building's entire 22nd and 23rd floors, where it will relocate from the nearby Metropolitan Tower on West 57th Street. Vornado, one of the largest landlords in the city, has its corporate headquarters on the building's top three floors.

Landlords have been hoping for an uptick of activity among financial firms, the city's biggest office-using industry. In recent years financial firms, under greater regulatory scrutiny, have shed space, but under a new Trump administration that has promised looser restrictions on the sector, expectations have been revived that the industry will grow once again.

Large private-equity firm Lone Star Funds is more than doubling its space at upscale Midtown office building 888 Seventh Ave.

The firm is growing from about 22,000 square feet in the 47-story tower to roughly 50,000 square feet, sources say. The expansion is being arranged to coincide roughly with the expiration of its current office leases in about a decade. The company will pay rent in the mid-$80s per square foot for the new space.

CBRE broker Harly Stevens represented Lone Star in the deal. Jared Solomon, an in-house leasing executive at Vornado, the building's landlord, represented ownership.

The deal will allow the Texas-based investment firm to expand both its own offices and those of subsidiaries that co-occupy the space, such as Hudson Advisors, a firm that provides asset-management services for Lone Star's $70 billion portfolio.

The 880,000-square-foot building is a popular spot for investment firms. The hedge fund Hutchin Hill Capital recently leased 40,000 square feet, the building's entire 22nd and 23rd floors, where it will relocate from the nearby Metropolitan Tower on West 57th Street. Vornado, one of the largest landlords in the city, has its corporate headquarters on the building's top three floors.

Landlords have been hoping for an uptick of activity among financial firms, the city's biggest office-using industry. In recent years financial firms, under greater regulatory scrutiny, have shed space, but under a new Trump administration that has promised looser restrictions on the sector, expectations have been revived that the industry will grow once again.

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