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

Lease is worth $2.4M a year to start

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

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here