City agency finalizes 350K sf lease renewal at Gramercy building

Despite reports that the city was putting the freeze on long-term lease deals, the Human Resources Administration has finally renewed its lease at 109 East 16th Street.

The agency renewed a 20-year lease at the Gramercy Park building several months after announcing the deal, the Commercial Observer reported. The city will initially pay $15.8 million a year, but the rent will eventually work its way up to $24.7 million in the last five years of the lease.
HRA is renewing 349,777 square feet — the entire 12-story building.

Cushman & Wakefield’s Robert Giglio and JRT Realty’s Ellen Israel represented the city in the deal. The landlord, Gould Investors, was represented in-house by Mark Lundy.

HRA also renewed a 15-year lease for 74,400-square feet at 305 Rider Avenue in the South Bronx. The agency will initially pay $1.86 million annually, but the rent will eventually increase to $2.5 million.

Earlier this month, the New York Post reported that the city was holding off on allowing agencies to finalize leases at new and existing offices, including HRA’s space at Gould Investors’ building. [CO] — Kathryn Brenzel