The New York City Department of Transportation is on the move. The agency has signed an agreement to lease a vacant warehouse owned by the Rabsky Group in East Williamsburg.
Under the deal, the DOT would take 92,000 square foot at the building, located at 101 Varick Avenue, for a 20 year lease, at around $30 a square foot, Commercial Observer reported. The site also includes a 62,000 square foot carpark, which would be leased at $15 a square foot.
David Junik and Abraham Lowy of Pinnacle Realty negotiated the deal for the landlord. A CBRE team of John Reinersten, Michael Lee and Yun Park represented the city in the deal.
Rabsky Group purchased the building in 2015 for $48 million, and held plans to do an office and retail conversion of the warehouse.
The Department of Citywide Administrative Services, which oversees real estate deals for city departments, has signed a license agreement on the property but it could take up to a year before the lease is approved. The agency is also considering adding another 10 years to the lease. Under the terms, the transportation agency would reportedly pay $4.1 million for the first five years, and incremental increases would apply each five years, before capping out $5.6 million. [CO] — David Jeans