Skadden Arps selected Reckson Metro Center for an alternative data center for their worldwide operations and plans to occupy the space recently vacated by Metromedia Fiber, Reckson officials note. Metromedia Fiber, which filed for Chapter 11 bankruptcy protection on May 20, 2002, had occupied approximately 110,000 sf in the high-rise building at 360 Hamilton Ave. Reckson took back approximately 70,000 sf of the telecommunications leased offices at 360 Hamilton. Metromedia Fiber currently occupies approximately 32,000 sf there. Skadden Arps signed a direct lease with Reckson on the former Metromedia Fiber space, Reckson officials stress.

Lisa Kiell, executive vice president of Jones Lang LaSalle in New York City, represented Skadden Arps in the transaction.

"We are proud to include Skadden Arps on our tenant roster at Reckson Metro Center," says Salvatore Campofranco, managing director of Reckson's Westchester and Connecticut Division. "We have developed an excellent relationship with the Skadden team throughout the transaction and look forward to providing the firm with the outstanding services for which Reckson is well-known." He adds, "The City of White Plains' proactive approach to providing incentives and a welcoming business environment were also key to attracting this world class law firm."

Specifically, Campofranco attributes the decision by The City of White Plains to extend the PILOT (Payment in Lieu of Taxes) agreement with Reckson on the property for another two years as a key factor in Skadden Arps selecting White Plains over Jersey City.

He says the PILOT agreement afforded Skadden Arps stability in terms of its real estate tax commitments for most of its lease term at the Reckson Metro Center property. Skadden Arps will be occupying the entire third floor and a portion of the fifth floor at the downtown White Plains property.

Campofranco notes that the 12-story Reckson Metro Center, which totals approximately 380,000 sf, is currently about 85 percent leased.

The closing on the lease deal was a victory for the City of White Plains, the Westchester County Office of Economic Development and the Westchester County Industrial Development Agency who worked together to convince Skadden Arps to house the data center in White Plains.

"We worked cooperatively on the deal," says Teri Waivada, executive director of the Westchester County Industrial Development Agency. "We are very pleased we were able to convince them to lease space in White Plains. She noted that Skadden Arps was considering opening the data center office in Jersey City."

Waivada noted that the City of White Plains assisted in providing some parking concessions and other incentives. The Westchester County Industrial Development Agency induced an application by Skadden Arps in July that provided the law firm with approximately $1,081,125 in sales tax exemptions. Skadden Arps estimated the lease deal and necessary renovations at 360 Hamilton Ave. would cost approximately $21.9 million.

Commenting on the deal, White Plains Mayor Joseph Delfino says, "I want to take this opportunity to welcome Skadden, Arps to the White Plains Central Business District. I also want to commend Reckson Metro Center on its ability to attract firms like Skadden, Arps to White Plains and contributing to a continually flourishing CBD."

Skadden Arps, which did not return phone calls for comment on the deal, is expected to initially have approximately 138 full-time employees at its White Plains office, which will serve as a general and executive office location as well as a data center, according to papers filed with the Westchester County IDA.

Skadden Arps has 23 offices around the world and employs approximately 1,700 lawyers who practice in more than 40 areas of law and industry specializations.

Skadden Arps is one of the nation's top law firms in the field of corporate mergers and acquisitions. The corporate law firm, whose New York City offices are housed at 4 Times Square, recently represented Merrill Lynch in its settlement with the New York State Attorney General over alleged conflicts in Merrill Lynch's stock research.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.