IBM Spinoff to Lease New HQ at One Vanderbilt

NEW YORK — SL Green Realty Corp. announced that IBM’s new spinoff company — with the bizarre name Kyndryl — has signed a 22,531-square-foot, 9-year lease, covering a portion of the 15th floor at One Vanderbilt Avenue for its new global headquarters.

One Vanderbilt, the recently opened skyscraper across from Grand Central Terminal at 42nd Street and Vanderbilt Avenue, is now 81% leased and remains on target to reach 90% leased by the end of this year. (Photo above of One Vanderbilt at night: Twitter)

Kyndryl is the independent company that will be created following the separation of IBM’s Managed Infrastructure Services business, which is expected to occur by the end of 2021. Kyndryl designs, runs and manages reliable technology infrastructure for some of the world’s most important businesses and organizations.

“We’re delighted to welcome Kyndryl to One Vanderbilt Avenue,” said Steven Durels, Executive Vice President and Director of Leasing and Real Property at SL Green. “They join a rapidly expanding roster of industry leading companies that have selected One Vanderbilt because of its best-in-class design, healthy work environment, extensive suite of amenities and commuter convenience.”

“At Kyndryl, we help our customers advance the vital systems that power human progress, and we chose a global headquarters in New York City because it exemplifies the vitality and energy of our new company,” said Kyndryl CEO Martin Schroeter. “Our headquarters building reflects best-in-class sustainability practices and we are excited to be part of the revitalization of Midtown Manhattan.”

Patrick Murphy, Winston Schromm and Will Yeatman of Cushman & Wakefield represented Kyndryl. Robert Alexander, Ryan Alexander, Alex D’Amario and Emily Jones of CBRE represented the landlord.

According to an IBM press release, Kyndryl is a modern adaptation of two words that are central to the new company’s identity and mission.  “Kyn” is derived from the word kinship, referencing the belief that relationships with people — employees, customers and partners — are at the center of the strategy, and that long-lasting relationships must be built and nurtured. “Dryl” comes from tendril, bringing to mind new growth and the idea that — together with customers and partners — the business is always working toward advancing human progress.

Earlier this month, SL Green announced three new leases at One Vanderbilt. MSD Partners, an investment adviser that manages money for billionaire Michael Dell, has signed a 35,567-square-foot, 15-year lease covering the entire 26th floor. Mamoura Holdings (US), LLC has signed a 28,448 square foot, 10-year lease covering the entire 51st floor. Mamoura Holdings is wholly owned by Mubadala Investment Company, a sovereign investor managing a diverse portfolio of assets in the UAE and abroad. Additionally, Nearwater Management LLC, a specialty finance company focused on providing asset-based financing solutions, has signed a 17,289-square-foot, 7-year lease covering a portion of the 33rd floor.