NYC DOF Renews 136K-SF for Storage at Industry City

reprints


The New York City Department of Finance signed a big lease to keep its space at Industry City in Sunset Park, Brooklyn last month, according to the Department of Citywide Administrative Services, which handles real estate transactions for the city.

DOF inked a renewal for 135,689 square feet at 147 41st Street, a large gray warehouse near the East River waterfront that is connected to the Brooklyn Nets practice facility. The agency has used the second-floor warehouse space to store city records for 20 years, according to a DCAS spokesperson. 

SEE ALSO: Balenciaga Moving SoHo Outpost to 110 Greene Street

DCAS  signed off on the five-year lease during a public hearing last month. The annual rent will be $2.6 million, or roughly $220,495 per month. 

And the city apparently owes Industry City three years of back rent. To fix the arrears, it will pay $151,518 in missed rent multiplied by the number of months from April 1, 2019 to last month’s lease renewal, according to The City Record, which works out to $5.5 million. The city also has the option to terminate the lease at any time after Oct. 31, 2025, if it gives the landlords 60 days notice. 

Meanwhile, the owners of Industry City are responsible for the cost of upgrades to the building and the space. 

A spokesperson for DCAS said there were no brokers involved in the deal, and Industry City’s spokespeople did not return a request for comment.

The warehouse at 147 41st is also home to video equipment rental company Ver Technologies and online camera marketplace MPB. The 16-building Industry City complex includes 6 million square feet of office, industrial and retail space along the Brooklyn waterfront. Jamestown, Belvedere Capital, Cammeby’s International, FBE Limited and Angelo, Gordon & Co. own the development, which was built in the early 20th century and renovated over the last several years.

Rebecca Baird-Remba can be reached at rbairdremba@commercialobserver.com.