NEW YORK CITY-A mixed-use property across from Atlantic Yards has secured its largest lease to-date. The Human Resources Administration of New York (HRA) signed a 20-year lease for 400,000 square feet inside the 10-story, 660,000-square-foot building at 470 Vanderbilt Ave. in Downtown Brooklyn, says landlord GFI Development Co., the development arm of GFI Capital Resources Group.
The organization will consolidate three of its Brooklyn offices into the space, says GFI. The new offices will house job training programs and other services provided by some 1,800 employees. Construction will begin toward the end of the year, with move-in targeted for winter 2012-13.
The deal involved a variety of parties and lenders, and will be financed through a recapitalization led by investment firm Starwood Capital Group LP, involving $30 million of equity, a $130-million senior loan by CIBC and $44 million of tenants improvement financing arranged by Lance Capital LLC and CGA Capital Corp.
In addition to the HRA lease, the League Education and Treatment Center also signed a 25-year, 77,148-square-foot lease, where it will expand and relocate from its existing location at 67 Front St. in DUMBO. The new tenants will join the New York City Housing Authority, which has leased 62,000 square feet at 470 Vanderbilt since 2009.
“We are pleased that these two highly respected public organizations have chosen 470 Vanderbilt Avenue for their tenancy,” says Allen Gross, president of GFI Capital Resources Group, in a statement. “Occupancy for the building will be up to 85 percent after being largely vacant for over a decade, changing the face of the downtown Brooklyn community.”
GFI will now build-out the space at the facility for the new tenants and to lease the building’s remaining 70,000 vacant square feet, including 15,000 square feet of retail.
HRA was represented by Peter Hennessey of Cassidy Turley, previously of Jones Lang LaSalle. The League Education and Treatment Center was represented by Paul Ippolito of Newmark Knight Frank. Gary Kamenetsky of CBRE acted on behalf of GFI on both transactions.
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