NYCHA to move out of HQ at 250 Broadway after 50 years

Agency plans to consolidate offices at 90 Church Street

TRD New York /
Jul.July 26, 2017 02:00 PM

From left: NYCHA’s Nicole Ferreira, 250 Broadway, 23 Ash Street (Credit: Google Maps) and C&W’s Peter Hennessy

The New York City Housing Authority said it will vacate its headquarters at 250 Broadway by 2019 and move all employees to its other Financial District office at 90 Church Street after agreeing to a new 20-year lease there.

The agency claims that the consolidation will save it $13 million per year between 2020 and 2024 and $26 million per year after that until the lease expires in 2039. NYCHA currently occupies 359,000 square feet at 250 Broadway, where it has been since the 1960s.

The move will reduce NYCHA’s overall footprint from 1.35 million square feet to 1.02 million square feet. The agency insists it will not reduce staff but rather use space more efficiently. Cushman & Wakefield’s Peter Hennessy, Robert Lowe, Christine Colley and Jared Thal advised NYCHA on the move. The property at 90 Church Street is owned by the U.S. Postal Service while the owner of 250 Broadway is Amtrust Realty, according to property records.

Parallel to its new lease at 90 Church, NYCHA also agreed to a new 20-year deal at Andrew Chung and Westbrook Partners’ 23-02 49th Avenue, where the agency currently occupies 440,000 square feet under a bargain lease expiring in 2020. The agency plans to apply for a property tax abatement for public benefit corporations that, if approved, could save it upwards of $2 million per year.

Meanwhile, NYCHA also plans to sell an industrial property at 23 Ash Street in Greenpoint, which it hopes will fetch more than $20 million. The site, currently home to a single-story warehouse, offers 112,000 buildable square feet.

NYCHA’s efforts to reduce its real estate expenses come as the agency faces a more uncertain funding environment. Earlier this year, the federal Department of Housing and Urban Development said it plans to slash spending on NYCHA projects by $75 million. “The hard-fought gains to improve service levels may slip backwards at one of the first casualties of cuts,” NYCHA chair Shola Olatoye said at the time.

NYCHA isn’t the only city agency making a move. Last month, The Real Deal reported that the Economic Development Corporation is in talks to sign a 220,000-square-foot lease at One Liberty Plaza.


Related Articles

arrow_forward_ios
(Photos by Sylvia Varnham O'Regan, Getty)

After looting, BIDs reverse guidance on boarding up stores

After looting, BIDs reverse guidance on boarding up stores
“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think

“5 years ago, people would say, what’s a TikTok?” Bill Rudin on why NYC’s office market may be more resilient than you think
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
IBM CEO Arvind Krishnam and 88 University Place (Google  Maps, IBM)

IBM to leave WeWork’s 88 University Place

IBM to leave WeWork’s 88 University Place
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
Facebook CEO Mark Zuckerberg (Getty)

“Large pools of talent”: Mark Zuckerberg touts remote-work plan

“Large pools of talent”: Mark Zuckerberg touts remote-work plan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...