Brookfield to Remain in Same Manhattan Spot Into 22nd Century

Brookfield Properties has extended its ground lease with the Battery Park City Authority on 9.4 million-square-foot Brookfield Place for another 50 years to 2119. The lease had been set to expire in 2069. 

The move will generate around $1.5 billion for the city.

The sizable ground lease required an equally sizable team to see it through. The Battery Park City Authority was advised by Stacom CRE‘s Darcy Stacom; CBRE‘s Eric Negrin; HR&A Advisors‘ Carl Weisbrod, Bret Collazzi and Nick Hughes; and Skadden Arps’ Neil Rock and Vered Rabia. Savills‘ David Heller and Mark Todrys and Fried Frank‘s Laurinda Martins and Simon Elkharrat advised Brookfield on the deal.

Some portion of this money will go toward the Battery Park City Authority’s joint purpose fund, which helps support affordable housing projects throughout the city, according to Crain’s New York Business, which was first to report the deal.

Gov. Kathy Hochul said in a statement that the additional inflow of capital will not only help accelerate affordable housing development and preservation citywide, but will also “ensure the stability of Battery Park City” and “uplift the city’s economy” via the popularity of Brookfield Place.

As part of the deal, Brookfield will reserve 10,000 square feet of office space for community organizations and nonprofits, according to Crain’s, and will also contribute $2.5 million for improvements to adjoining West Street.  

Recent leasing activity in Brookfield Place has included Jane Street Capital renewing and expanding for nearly 1 million square feet, almost double its previous lease, at 250 Vesey Street in February; Invesco renewing over 200,000 square feet at 225 Liberty Street in July; and EquiLend taking 19,806 square feet in that same building in March, as Commercial Observer previously reported.

Brookfield declined to comment on the lease extension.

Larry Getlen can be reached at lgetlen@commercialobserver.com.