The Real Deal New York

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

Lease is worth $2.4M a year to start
December 17, 2018 09:30AM

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