Department of Aging 80K-SF Deal at 14 Wall Paused Amid Probe Into NYC Office Leasing
By Mark Hallum December 17, 2024 11:02 am
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Allegations of corruption involving Mayor Eric Adams and his administration, including one focused on potential bribery and money laundering in the city’s leasing of commercial properties, has caused one deal to be postponed for the time being.
The New York City Department of Aging’s 80,000-square-foot lease at Alexander Rovt’s 14 Wall Street never went through as planned, with the administration hitting the pause button on the deal as questions arose about the site selection process.
“As the mayor already indicated, a review is taking place on policies and procedures across the administration, including 14 Wall Street,” a City Hall spokesperson said in a statement Tuesday. “As this review takes place, we are pausing the process of this lease.”
When the Department of Citywide Administrative Services (DCAS) — which handles office leasing for the city — considered locations for the Department of Aging’s new office, it looked at several sites, including 250 Broadway where other city agencies are headquartered. Instead, DCAS chose Rovt’s building.
That raised some red flags as Rovt’s family has been a longtime contributor to Adams’s campaign and had recently given $15,000 to the mayor’s legal defense fund. Also raising concern was DCAS Deputy Commissioner Jesse Hamilton’s relationship with Diana Boutross, Cushman & Wakefield’s broker for 14 Wall Street.
The mayor’s former chief adviser, Ingrid Lewis-Martin, who resigned Monday, also reportedly had a close relationship with Boutross.
In October, Manhattan District Attorney Alvin Bragg’s office opened a corruption investigation into the city’s handling of office leasing, with Boutross and Lewis-Martin reportedly having their phones seized by authorities.
DCAS’s selection process for managing the city’s $1.5 billion real estate portfolio then came under the radar of the New York City Council, which questioned Hamilton’s qualifications to oversee leases and his motivation for awarding city contracts.
Aside from the investigation into the leasing process, Lewis-Martin also faces a criminal indictment for allegedly receiving improper gifts, according to reports. Those charges are similar to allegations made against Adams, who already was indicted on federal corruption charges in September.
In another blow to Adams’s standing as mayor, as well as his prospects for re-election, the New York City Campaign Finance Board decided Monday that his campaign would not be receiving the 5-to-1 matching funds program in the upcoming election.
The corruption investigation by the Federal Bureau of Investigation alleges Adams used his relationship with the Turkish government in a straw donor scheme to boost the amount of taxpayer funds received through the program.
Mark Hallum can be reached at mhallum@commercialobserver.com.
