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

Lease is worth $2.4M a year to start

New York /
Dec.December 17, 2018 09:30 AM

MTA acting chairman Fernando Ferrer and 1 Pierrepont Plaza in Brooklyn (Credit: Getty Images)

The Metropolitan Transportation Authority renewed its nearly 50,000-square-foot space in Brooklyn Heights.

The MTA signed a 10-year lease for the 47,042 square feet it occupies on the full sixth floor of Forest City New York’s 1 Pierrepont Plaza, Commercial Observer reported.

The agency will pay a starting rent of $50 per square foot, which will increase at a rate of 1.25 percent annually, according to MTA board documents. And as a sweetener, Forest City will give New York City Transit a tenant-improvement allowance to build out its space of $1.95 million, or $41.50 per square foot. The new lease begins in March 2019.

The MTA originally leased the offices in 2013 for staff working on projects related to Superstorm Sandy, which the agency plans to keep working on through 2022. At that point, employees will be transferred to other New York City Transit programs like “Fast Forward,” which includes spending $60 billion over 10 years to repair the aging subway system and upgrade signals.

The Fire Department of New York earlier this year signed a lease for 40,000 square feet in the building.

This month, Brookfield Asset Management officially closed on its $6.8 billion buy of Forest City. Brookfield is set to takeover 4.8 million square feet of office space and 2,500 apartments from the former real estate investment trust. [CO] – Rich Bockmann


Related Articles

arrow_forward_ios
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
(Illustration by The Real Deal; Getty)
Multifamily faces stricter emission caps
Multifamily faces stricter emission caps
Amir Korangy, Michael Shvo and Jeff Greene
Michael Shvo and Jeff Greene talk distress, opportunities in office
Michael Shvo and Jeff Greene talk distress, opportunities in office
(Getty)
Developers went on permit palooza before 421a expiration
Developers went on permit palooza before 421a expiration
arrow_forward_ios

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

Loading...