Battery Park City Authority really likes its Lower Manhattan space. So much so that it agreed to extend its ground lease until 2119 at Brookfield Place.
The previous deal wasn't set to expire until 2069, as the extension is expected to generate roughly $1.5 billion for NYC, according to a report from the Commercial Observer.
Along with boosting the local economy, some of the benefits will be allocated to a joint purpose fund, managed by Battery Park City. The fund focuses on backing affordable housing developments.
The 9.4 million square foot property, owned by Brookfield Properties, will get a $2.5 million investment in building upgrades. Additionally, the landlord has agreed to set aside 10,000 square feet in office space for non-profit and community organizations.
On the lease, CBRE advised Brookfield Properties, while Battery Park City was represented by Stacom CRE.
Brookfield Place at 250 Vesey Street is known mainly for its shopping center (300,000 square feet of luxury and retail) and cultural arts, with office serving as a component at the property. At the 34-story building, some other major leases have gone down this year. This includes Jane Street Group's nearly one million square foot deal (as reported by Bloomberg) and Invesco renewing for more than 200,000 square feet, according to the Commercial Observer. Some other tenants at the property include Goldman Sachs, American Express, Le District, Gucci and Hermes.
In total, New York's Tri-State commercial real estate market generated $8.8 billion in sales, up 11 percent year-over-year in the second quarter, according to a recent report from CBRE. The strongest gains were seen in the retail sector, which skyrocketed by 50.9 percent to $1.59 billion. Office saw an increase of 18.3 percent to $2.19 billion.
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