MTA could sell buildings to raise cash

TRD New York /
Mar.March 23, 2011 10:01 AM

Facing a $100 million budget gap, the Metropolitan Transportation Authority is thinking about selling or leasing a portion of its 3 million-square-foot New York City office portfolio in order to avoid additional service cuts and fare hikes. According to the Wall Street Journal, the agency issued a request for proposals last month hoping to find ways to raise cash from its real estate. The MTA currently spends almost $89 million per year in rent, taxes and operating costs for its offices, but much of that space is going unused in the wake of steep staff cuts. Among the properties now said to be on the chopping block is the MTA’s 277,000-square-foot headquarters at 347 Madison Avenue, which is around 80 percent occupied, and a mostly-vacant Jay Street facility in Downtown Brooklyn that the agency had planned to renovate. The Madison Avenue property, which sits between 44th and 45th streets and is connected to Grand Central Terminal via an underground passageway, could be particularly valuable because it comes with the opportunity to purchase air rights from Grand Central. [WSJ]


Related Articles

arrow_forward_ios

Second Ave subway’s next phase could impact Durst, Extell dev sites

Corey Johnson’s MTA reform plan targets controversial Scaffold Law

MTA renews 50K sf at Forest City’s
1 Pierrepont Plaza in Brooklyn

The MTA is still spending millions to maintain its empty headquarters

De Blasio to Cuomo: You’ve got the money, now fix MTA and NYCHA

Cuomo made appointments to state boards. Then, in apparent defiance of his own executive order, he cashed their checks

To pay for the broken MTA, Cuomo wants to tax landlords near new subway projects

Real estate owners should pay for transit project costs, MTA officials say

arrow_forward_ios