Leases  ·  Office

NYC Health Department Takes 18K SF in Downtown Brooklyn

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The New York City Department of Health and Mental Hygiene (DOH) is planning an outpost for its early childhood intervention program in a new Downtown Brooklyn high-rise, according to The City Record.

The agency took 17,750 square feet for 21 years on the fifth floor of The Paxton at 532 Fulton Street, according to spokespeople for the Department of Citywide Administrative Services, the city’s leasing agency. The office will serve as a hub for the early intervention program, which “helps young children (birth to 3 years) who are not learning, playing, growing, talking or walking like other children their age,” according to the city health department’s website. It supports families whose children may have developmental delays and sets them up with teachers and therapists. 

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The city will pay $866,122 annually for the second through sixth years of the lease, $956,332 for the seventh through 11th years, $1 million for 12th through 16th years, and $1.1 million the 17th through 21st years, per the notice in The City Record. That means the taking rent will start at $49 per square foot and step up to $64 per square foot in the last five years of the lease. 

Rent for the first year will be abated, and the agency has the option to terminate the lease starting in the 10th year if it gives landlord Jenel Management 18 months written notice, according to the City Record.

The public notice also indicates that the landlord will cover $1.5 million for renovation of the space, while the city will handle the remainder, up to $900,000. 

It wasn’t clear who brokered the transaction or where the DOH program is relocating from. The building, however, is a 43-story mixed-use tower with 327 apartments, 137,000 square feet of offices and 33,000 square feet of retail. The Marvel Architects-designed tower — which includes 89 affordable units that hit the housing lottery over the summer — sits on the corner of Flatbush Avenue and Fulton Street.

DOH will join another government agency in the building. The federal General Services Administration took 54,000 square feet there last year, as Commercial Observer previously reported. 

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