The Real Deal New York

Port Authority won’t reveal rents at 1 WTC

Public agency says disclosing information could do competitive harm
January 06, 2015 03:40PM

Despite being 90 percent owned by public agency the Port Authority of New York and New Jersey, the bulk of One World Trade Center’s financial information remains secret — including tenants’ rents.

In response to Freedom of Information Act requests from the Wall Street Journal, as well as organizations and individuals, the Port Authority took the stance that the rents are private — and could be a hindrance to the agency if revealed, the Journal reported.

The agency claims release of rents is blocked under a Freedom of Information rule that deals with giving competitive advantages in awards and collective bargaining agreements.

In comparison, rents are publicly available at major privately-owned office towers including Larry Silverstein’s 3 World Trade Center and the Durst Organization’s One Bryant Park.

Among the limited financial information that the agency has disclosed about 1 World Trade Center: the Port Authority expects to make $875 million from its 15-year deal with Legends Hospitality, the operator of the tower’s planned observation deck. An unspecified amount of that is based on shared profits with Legends, however. The building’s annual operating income is projected to be $144 million.

The Durst organization owns the remaining 10% of the property. [WSJ]Tess Hofmann