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Smith Barney grows in Brooklyn.

Mayor Dinkins announced last week that Smith Barney, Harris Upham & Co. has signed a 10-year lease for 250,000 square feet at the Brooklyn Army Terminal.

Smith Barney, which has housed its printing and mail operations at the city-run facility since 1990, renegotiated its 90,000-square-foot lease and expanded its commitment to accommodate the pending merger with Shearson Lehman. The deal to acquire the retail and asset management divisions of Shearson Lehman/Hutton is expected to close this week, according to Bob Connor, spokesperson for Shearson.

The 1O-year lease with a 1O-year option is the largest signed in Brooklyn by a private company in recent years, according to Brooklyn Economic Development officials, and it will make Smith Barney the largest tenant at the Brooklyn Army Terminal.

Smith Barney is expected to take full occupancy of the space in January of 1994. The company will move 160 employees to the Brooklyn facility to total 250.

Eventually, Connor said, Smith Barney will vacate its lease for six floors at 1345 Avenue of the Americas and move into the two buildings on Greenwich Street -- one an office facility and the other an operations base -- that they will acquire when the Shearson deal is completed. Before the merger announcement, Smith Barney's parent was expected to sign a major lease at 1585 Broadway.

According to Connor, the company was not represented by any outside real estate brokerage concern in the Brooklyn lease.

The Brooklyn Army Terminal, located on the waterfront between the Bay Ridge and Sunset Park sections of Brooklyn, is a project of the New York City Economic Development Corporation, which has overseen the redevelopment and operation of the 97-acre complex. Smith Barney is housed in the 2.2 million-square-foot Building B. Redevelopment continues on Building A.

Katy Marshall, spokesperson for the Economic Development Corporation, said Smith Barney will pay "competitive rents", but she would not reveal the exact figure. Benefits of relocating to the Brooklyn Army Terminal from Manhattan, according to Marshall, include: Fixed real estate taxes for 11 years, 30 percent reduction in commercial occupancy tax, and discounts on electricity and gas.
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Title Annotation:Smith Barney, Harris Upham and Co. signs ten-year lease for commercial space at Brooklyn Army Terminal, Brooklyn, New York, New York
Author:Fitzgerald, Therese
Publication:Real Estate Weekly
Date:Jul 28, 1993
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