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NYC transport agency to sign big lease deal with Rabsky in East Williamsburg
Landlord had planned office and retail conversion at 101 Varick
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