Brookfield Place will be Brookfield’s place in Battery Park City far into the future.
The real estate giant extended its ground lease at the 9.4-million-square-foot Manhattan complex for another 50 years, Crain’s reported. The lease with the Battery Park City Authority, a state agency, isn’t scheduled to expire until 2119.
As part of the extension for the office complex, Brookfield agreed to pay higher ground-rent payments. The payments are expected to generate $1.5 billion for the city and a joint fund supporting affordable housing development across the city. Last year, the governor, mayor and comptroller announced a $500 million investment in the same fund.
Another aspect of the extension is a commitment from Brookfield to reduce emissions, aimed at a net-zero goal by 2050. Additionally, the firm will contribute up to $2.5 million to improve West Street and designate 10,000 square feet of office space for nonprofits and community organizations.
“This agreement not only ensures the stability of Battery Park City while building and preserving more affordable homes throughout New York City — it also uplifts the city’s economy with the continued lease to Brookfield Place,” Gov. Kathy Hochul said in a statement.
Darcy Stacom and CBRE’s Eric Negrin were among those to advise the Battery Park City Authority on the lease negotiations, while Savills’ David Heller and Mark Todrys were among those to advise Brookfield.
Office rents at Brookfield Place range from $53 to $65 per square foot, according to CoStar. Brookfield acquired the complex from bankrupt Olympia and York in 1992, spending $900 million to modernize the asset in the last decade.
Earlier this year, Jane Street Capital expanded its footprint at Brookfield’s 250 Vesey Street in Battery Park City to nearly 1 million square feet. The expansion of roughly 400,000 square feet added to the 600,000 square feet Jane Street previously occupied.
Other tenants at the complex include Royal Bank of Canada and Jones Day. Scotiabank occupies 131,000 square feet, but that space appears to be in jeopardy as it relocates to another Brookfield building, 660 Fifth Avenue.
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