GlobeSt.com EXCLUSIVE: NY Life Finalizes Major Purchase in Westchester

Sy Sternberg, chairman and chief executive officer of New York Life, says, "Our company is looking forward to having a presence in Westchester to compliment our home office in Manhattan. As a growing company we want some additional flexibility for our headquarters staff and now that we own the facility we can start preparing it for our specific needs."

New York Life officials have said it will relocate some New York City-based workers to Westchester as part of a decentralization program the company is undertaking in response to an "extensive study" it performed on its potential vulnerability to disaster after the terrorist attacks of Sept. 11. The company has also been considering relocating some employees to a company-owned site at 260 Cherry Hill Rd. in Parsippany, NJ.

A spokesman for New York Life tells GlobeSt.com that the firm has not made any final determination as to what functions will be housed at the Mount Pleasant, NY complex, or how many employees would be relocated from Manhattan and how many would be new hires. Sternberg, as well as the company's senior staff, will remain in Manhattan.

The renovation program at the Mount Pleasant Executive Center has been estimated at approximately $20 million. Sternberg states plans call for employees to begin occupying the Mount Pleasant property in 2004.

No purchase price was revealed by New York Life or the seller The Gale Co. of Florham Park, NJ. In papers filed by New York Life with the Westchester County Industrial Development Agency several months ago, the firm stated the purchase price was approximately $38 million.

However, brokers and company officials noted at the time that the sale price was merely a preliminary figure and was subject to change. Sources close to the deal tell GlobeSt.com that the final sale price was somewhat less than the preliminary sale figure given to the Westchester County IDA.

CB Richard Ellis senior vice president Frank Tomasulo, vice president Paul Hoffmann and vice president Al Gutierrez represented The Gale Co. in the deal. New York Life was represented by A. Mitti Liebersohn of Cushman & Wakefield.

Tomasulo comments that the deal "is a very strong testament to the viability of Westchester County," noting that in less than 12 months, three major corporations have made major commitments in Westchester. He explains that in 2002, Morgan Stanley acquired the former Chevron/Texaco headquarters and plans to have 1,400 workers initially operating out of that complex; and Fuji Photo Film USA decided to remain in Westchester while relocating and expanding its operations to more than 160,000 sf of space in Valhalla, NY.

In early February, New York Life Insurance Co. revealed its interest in the Mount Pleasant property when it applied for inducement for tax incentives with the Westchester County IDA. Later, the IDA approved the incentive package with New York Life that includes approximately $1.7 million in sales tax exemptions.

New York Life Insurance currently employs approximately 2,300 workers and occupies approximately 1.1 million sf of office space at its landmark 40-story 51 Madison Ave. headquarters building that was built in 1928. Nearby at 63 Madison Ave., the firm, which was founded in New York City in 1845, leases approximately 400,000 sf where it houses about 1,200 workers. The company also employs approximately 500 workers in other leased space in New York City, company officials say.