City to lease 40K sf in FiDi
Dept. of Youth and Community Service close to signing 20-year lease
The city’s Department of Youth and Community Service is close to finalizing a 20-year lease for two floors at 123 William Street in the Financial District.
The agency plans to take 40,600 square feet on the 17th and 18th floors of the building, which is owned by American Realty Capital.
The lease starts at $2.1 million a year, or $51 per square foot, Commercial Observer reported. The rent increases every five years, hitting $2.6 million a year in years 15 through 20 of the lease. (That breaks down to $63 per square foot.)
American Realty Capital bought the 545,000-square-foot office building for $253 million in 2015.
Terms of the deal, which was handled by the city’s Department of Citywide Administrative Services, allow the agency to terminate the deal in the 10th or 15th year, with at least a year’s notice. DYCS is currently located at 2 Lafayette Street, and it’s unclear whether it will move or expand to 123 William.
City Hall is expected to sign off on the agreement next week at a public hearing. [CO] — E.B. Solomont