NYC Department of Finance Joining Growing Civic Hub in Sunset Park
By Abigail Nehring June 25, 2024 7:59 pm
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The New York City Department of Finance (DOF) has a new outpost in Sunset Park, Brooklyn, where it plans to stash sensitive documents for the next two decades.
Pending the final stamp of approval in the city’s public review process next month, DOF will sign a 20-year lease for 31,900 square feet on the fifth floor of Salmar Properties and Madison Capital’s 850 Third Avenue, according to city planning records.
As part of the deal, the agency will also lease 750 square feet in a parking lot adjacent to the former industrial property, also known as Federal Building No. 2, the planning records show.
The city will pay an annual base rent of $577,552 for the first five years of the lease, and the rate will increase in the following years, according to terms of the deal detailed in the City Record.
DOF will use the space to store confidential records and plans to keep it staffed around the clock with between five and eight employees, according to city records.
The city has been using space at the nearby 148 39th Street, now known as Building 19 in Industry City, since 1997 for a similar purpose.
But DOF will be able to shrink its Brooklyn storage space by about 30,000 square feet in the move, thanks to the high-density shelving system at the Third Avenue building, according to the agency.
It’s unclear if brokers were involved in the deal. A spokesperson for the Department of Citywide Administrative Services, which handles real estate for city agencies, did not respond to a request for comment.
DOF will have a few similar neighbors at its new home, including the city’s Human Resources Administration, which signed on for 158,000 square feet at the building last year. And another city agency, the Administration for Child Services, is also in the process of leasing 23,000 square feet at the property, according to city planning records.
Aside from city tenants, Atlanta-based retailer Floor & Decor opened its first New York City outpost in the retail portion of the building last month, signing a deal for 129,000 square feet.
Abigail Nehring can be reached at anehring@commercialobserver.com.
