Silverstein's Association Center fully occupied after the latest lease (Silverstein Properties Inc.).
The three long-term leases, representing a combined value of more than $18 million, are with the American Foundation for Aids Research, which leased the entire 13th floor; the Jewish Child Care Association of Greater New York, which took the entire 12th floor; and Girls Incorporated, which will occupy part of the third floor. These groups were represented by Glenn H. Isaacson of Insignia/Edward S. Gordon Co.; Howard Rosen of Grubb & Ellis New York, Inc; and Howard M. Simson and Tara Stacom of Cushman & Wakefield, respectively.
The three new tenants will relocate into the Association Center during the first quarter of 1998.
"This is a tremendous success story made possible by imagination and cooperation between private business and government," said Roger A. Silverstein, vice president of Silverstein Properties. Thanks to incentives provided by the city's Industrial Development Agency, non-profit tenants in the building are exempt from city real estate taxes, which are usually passed through by landlords as part of the rein.
"This is a win-win for everyone," Silverstein said of the program, which began in 1992.
The American Foundation for Aids Research will relocate to the Association Center from 733 Third Avenue; the Jewish Child Care Association of New York from 575 Lexington Avenue; and Girls Incorporated from 30 East 33rd Street.
Under a joint venture between Silverstein Properties and the Economic Development Corporation, two-thirds of the building is designated for this incentive program. Silverstein said that future available space will be offered to the not-for-profit and for-profit sectors alike.
EDC entered into this program with Silverstein Properties in an effort to stem the exodus of not-for-profit organizations from New York City.
"Not-for-profit participants have demonstrated their commitment to New York City by executing 15 year leases with us. The tax abatements helped cut rent costs for these groups, thereby making it economically possible for them to stay in Manhattan," Silverstein explained. "If those organizations left the city, so would a lot of jobs they provided."
The city's EDC estimates that there are more than 11,500 non-profit organizations employing 600,000 people in New York City, who pay about $1 billion annually in taxes.
Silverstein Properties, Inc. owns and operates more the 10 million square feet of Class A office, retail and industrial space in the New York metropolitan area.
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|Publication:||Real Estate Weekly|
|Date:||Jan 14, 1998|
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