Two New York state agencies are in late-stage negotiations to renew a 250,000-square-foot spread at a U.S. Postal Service-owned building at 90 Church Street in the Financial District, The Real Deal has learned.
The New York state Department of Health is looking to do a 10-year renewal for floors 13 through 15, and the Public Service Commission is looking to renew its lease for the fourth floor.
The two tenants are now in an extension period, after the 10-year lease they jointly signed in 2004 expired.
Asking rent at the 15-story, 1.15 million-square-foot Art Deco property is about $40 per square foot.
“The state is in a unique position in that they don’t pay property taxes at the building,” a source familiar with negotiations said. “It’s doubtful they would want to leave.”
Boston Properties’ John Powers is representing the landlord, while CBRE’s Stephen Siegel is representing the tenant. Both brokers declined to comment.
Formerly known as the Federal Office Building, 90 Church (also known as 74-90 Church Street, 1-15 West Broadway and 44-58 Barclay Street) was built in 1935 and was occupied for decades by federal agencies such as the Internal Revenue Office and the Army Corps of Engineers. Other tenants include the USPS and the New York City Housing Authority, which is looking to sublease at least a portion of its space, sources said.
Boston Properties, which holds the net lease on 90 Church and manages the property, extensively renovated it in the mid-1990s. Following the Sept. 11 attacks, when debris and dust led to widespread contamination of the interior, the property again underwent a rehabilitation.
Source: The Real Deal