The Real Deal New York

A 145K sf question mark: City pulls back $10M incentive for Aetna to move to Aurora and Vornado building

It's unclear what will happen with the space
January 10, 2018 05:20PM

From left: Mark Bertolini, 61 Ninth Avenue, Jared Epstein and Steve Roth (Credit: Aetna, Vornado and LinkedIn)

The city has rescinded the $9.6 million it offered Aetna to move its headquarters to Aurora Capital Associates and Vornado Realty Trust’s 61 Ninth Avenue because, according to officials, the relocation isn’t happening.

The city’s Economic Development Corp. canceled the incentives — which were part of a larger package with state funds that would’ve totaled $34 million over a decade — because the insurance giant isn’t moving to the Meatpacking District, Crain’s reported. The $24 million in tax breaks offered by the state hinged on the company meeting certain milestones.

Last year, Aetna agreed to lease the entire office portion of Aurora and Vornado’s 165,000-square-foot commercial building. Aetna planned to move 250 employees from its Hartford, Connecticut, headquarters to the Meatpacking building. But in December, the company was acquired by CVS, and Aetna executives said that all real estate would be evaluated as a result.

It’s unclear what Aetna will do with the Meatpacking space since the company already signed a lease for 145,000 square feet in the building. Asking rent for the space was $150 per square foot. [Crain’s] — Kathryn Brenzel