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Brooklyn Navy Yard seeking marquee tenant for Building 77

Tax incentives one of the big draws of property

Renderings of the Brooklyn Navy Yard's Building 77 (credit: Beyer Blinder Belle) and David Ehrenberg
Renderings of the Brooklyn Navy Yard's Building 77 (credit: Beyer Blinder Belle) and David Ehrenberg

A penthouse office space at the Brooklyn Navy Yard’s new development, Building 77, has been on the market for 45 days. Although a tenant has yet to put pen to paper, the property’s brokers say interest in the space is surging.

The yard’s prime offering — a 150,000-square-foot space spanning floors 14 and 15 of the 15-and-a-half story building — offers 360-degree views of Lower Manhattan and the surrounding area, access to a 20,000-square-foot rooftop deck, and rents of $40 per square foot.

A $140 million renovation of the property is scheduled to be completed in the latter half of 2016.

JLL is marketing the property for the Brooklyn Navy Yard Development Corporation, which is looking for “a large company in the industrial/technology/design sector that will provide a center of gravity” for the industrial park, according to BNYDC president and CEO David Ehrenberg. “Building 77 is our best opportunity to bring in a marquee tenant,” he said.

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In the 45 days that the property has been on the market, JLL’s Michael Shenot and Michael Berg said that they have shown the space to more potential tenants than they would have expected in six months. The tenant showing the greatest intent is a Manhattan company that is contemplating a Brooklyn expansion, Berg said, but he declined to identify the firm.

Ehrenberg said the BNYDC hopes to sign a tenant by the end of 2015.

The Brooklyn Navy Yard’s generous incentives, including New York City relocation assistance and exemption from real estate and commercial occupancy taxes, are helping to drive interest. All told, the incentives shave off $18 to $21 per square foot, according to the brokers.

 

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