Leases  ·  Office

NYC Department of Finance Seals 183K-SF Deal at 375 Pearl Street


If you’ve walked around the Civic Center lately, it’s hard to miss the gaping hole at 375 Pearl Street as construction gets underway.

The former Verizon building at the foot of the Brooklyn Bridge is becoming less of a data center and more of an office property. Now Commercial Observer has learned a city agency will officially eat up a sizable chunk of the 1.1-million-square-foot property.

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The New York City Department of Finance has sewn up a 182,750-square-foot lease at the building at the corner of Avenue of the Finest, according to sources familiar with the deal. The lease covers the 26th through 30th floors.

While the length of the lease was not immediately clear, asking rents at the property range from $45 to $51 per square foot, as CO reported earlier this year.

Offices for the DOF commissioner and other top executives will be moved to the building, one source in the know indicated, as will some Brooklyn agency offices.  

Commercial Observer reported in January that the New York City Department of Citywide Administrative Services, which arranges leases on behalf of other city agencies, was nearing a deal for DOF.

Robert Giglio and George Keller of Cushman & Wakefield (CWK) represented DCAS, while Gerry Miovski and Gregg Rothkin of CBRE (CBRE) represented landlord Sabey Data Center Properties. Brokers on both sides of the deal declined to comment via spokespeople.

Sabey Data Center Properties bought the controlling stake in the building five years ago for $120 million. In May 2014, the landlord launched an upgrade to 15 upper floors of the 32-story tower, as CO reported at the time. The upgrades, which are currently underway, include floor-to-ceiling windows on the top tier of the build. The lower half of the property will remain a data center.

The new floors are quickly being eaten up by city agencies, given the structure’s proximity to City Hall and the David N. Dinkins Municipal Building. The New York Police Department signed an 18,000-square-foot deal in May 2015 to move its offices for the inspector general, the federal monitor and the compliance unit from several other locations.