Goldman Sachs Plans 2M-SF Downtown HQ

NEW YORK CITY-Financial powerhouse Goldman Sachs is planning a two-million-sf base of operations on Site 26–the last commercial parcel in Battery Park City. The project, which is projected to cost $1.8 billion to realize, is expected to be online in 2009 or 2010. It is the first development of headquarters space in Lower Manhattan in 16 years.

Already approved is $1 billion in Liberty Bond financing to go toward development costs. Nearly two months ago, Andrew Alper, president of the New York City Economic Development Corp., said a $1-billion allocation for a Goldman Sachs project was among the projects “in the pipeline.”

Goldman Sachs is currently negotiating a ground lease for the site through 2069 with the Battery Park City Authority, which is expected to provide for up to $13.4 million in sales tax exemptions. The company will also be eligible for Con Edison energy discounts worth an estimated $10.3 million and can apply for up to $25 million in Job Creation and Retention Program grant funds.