City Community Development Agency Nears Deal for 40K SF in FiDi



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.

SEE ALSO: City Youth Agency Seals 41K-SF Lease in FiDi

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.