Non-Profit Sells HQ, Buys Larger HQ Space on Third Avenue

NEW YORK CITY—Non-profit employment assistance agency FedCap Rehabilitation Services has sold its longtime headquarters at 211 West 14th St. and has acquired an entire floor at the 633 Third Ave. office building here, more than doubling its headquarters office space.

The deals were announced by Savills Studley, which arranged both transactions. The brokerage says that to upgrade its real estate portfolio, FedCap sold its existing 20,000-square-foot headquarters space at 211 West 14th St. to a joint venture of Adellco and The Carlyle Group.

The organization, founded in 1935, then purchased a 44,000-square-foot pre-built, Class A, turnkey office space comprising the entire sixth floor at 633 Third Ave. from the Union for Reform Judaism. No financial details on either transaction were reported. FedCap began its office search more than a year ago and had sought turnkey space that required little capital expenditure, according to Savills Studley.

FedCap is a nonprofit that provides paths to employment and economic independence through education, workforce development, occupational health services and economic development.

Savills Studley's EVP and co-branch manager Ira Schuman, managing director David Carlos, corporate managing director Bruce Rothman and executive managing director Kurt Handschumacher arranged the deals for FedCap. Michele Arbeeny and Deborah Bindler of the law offices of Windels Marx Lane & Mittendorf, LLP represented FedCap in both transactions.

“In a transaction structure like this, nonprofits have a great advantage when owning their space because it gives the organization the ability to control costs,” Schuman says. “FedCap wanted to establish its presence in Midtown while continuing to own a portion of its real estate portfolio and grow its overall footprint.”