Manhattan office landlords aren’t a charity case, but at least one building owner is likely grateful to receive a boost from a local nonprofit.
Catholic Charities of New York signed a 30-year, 77,000-square-foot lease at 80 Maiden Lane in the Financial District, Crain’s reported. The poverty-focused nonprofit was already occupying 27,000 square feet at the property — space it will keep — meaning it is expanding by roughly 50,000 square feet.
When looking solely at the 77,000-square-foot lease, however, it’s a highlight of the year for Manhattan’s downtown office market. The deal represents the fifth-largest lease of the year in the submarket, according to Colliers.
Meadow Partners owns 80 Maiden Lane, along with A.M. Properties and Cannon Hill Capital Partners. Three years ago, Meadow landed a $258.9 million CMBS loan from JPMorgan Chase for 80-90 Maiden Lane, retiring about $250 million of debt from Invesco Real Estate that came from a refinancing in 2018. The property is 86.3 percent leased, according to CoStar.
The building owners are converting Catholic Charities’ expanded space into office condos. For a tax-exempt nonprofit, that’s a big advantage as leasehold condos allow a tenant to be considered as owning their office space.
It’s unclear what Catholic Charities is paying the landlord; asking rents at the building range from $40 to $49 per square foot, according to CoStar. JLL’s Matt Astrachan and Greg Wang were among those representing the tenant, while CBRE’s Paul Amrich and Neil King were part of the landlord’s team.
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