The New York City Department of Youth and Community Development is close to signing a lease for two floors at American Realty Capital’s 123 William Street in the Financial District, Commercial Observer has learned.
The Department of Citywide Administrative Services (DCAS), which handles real estate for city agencies, negotiated a deal for 40,610 square feet on the entire 17th and 18th floors, a DCAS spokeswoman said. The landlord signed the 20-year lease in July.
While the deal has been finalized, City Hall won’t sign off on the agreement until DCAS holds a public hearing on it next week.
The city will pay $2.1 million annually for the first five years of the lease, or $51 a square foot, $2.2 million for the sixth through 10th years, or $55 per square foot, $2.4 million for the 11th through 15th years, or $59 a square foot, and $2.6 million for the 16th through 20th years, or $63 per square foot.
The agency can terminate the agreement in its 10th or 15th year if it gives the landlord a year’s notice. It will also have the option to renew for another five years at the end of the lease.
DYCD has occupied the space since 2014, but on a month-to-month license agreement, said a spokeswoman for the agency. This deal will convert the license agreement to a long-term lease.
CBRE represented the landlord. It wasn’t clear who was involved in the deal, but CBRE’s Brad Gerla and Jonathan Cope have been marketing 123 William Street. A spokeswoman for the brokerage didn’t respond to a request for comment. Unnamed brokers from Cushman & Wakefield represented DCAS.
Update: This post has been updated to reflect the fact that DYCD has occupied the building since 2014, but on a license agreement rather than a lease.