Brookfield Extends Battery Park City Lease for 50 More Years, Pays Hefty Price for Future Dominance
Brookfield's long-term lease extension secures its hold on Battery Park City and pumps millions into NYC's affordable housing fund.
Real estate giant Brookfield has secured its future dominance in Battery Park City with a 50-year extension on its ground lease for the 9.4-million-square-foot Manhattan complex. According to Crain's, the lease with the Battery Park City Authority, a state agency, was originally set to expire in 2119. But with this extension, Brookfield will continue to call Brookfield Place its home for even longer.
In order to secure the lease extension, Brookfield agreed to pay higher ground-rent payments. While the exact amount has not been disclosed, it is expected to generate a whopping $1.5 billion for the city and a joint fund supporting affordable housing development across the five boroughs.
Last year, Governor Andrew Cuomo, Mayor Bill de Blasio, and Comptroller Scott Stringer announced a $500 million investment in the affordable housing fund, which is aimed at creating more affordable housing options for New Yorkers. With Brookfield's additional payments, this fund will continue to grow and support the city's efforts to address the affordable housing crisis.
While this move may seem like a win-win for both Brookfield and the city, it also highlights the power and influence that large developers hold in shaping the city's real estate landscape. As one anonymous developer stated to The Real Deal, "The city can't afford to lose Brookfield, and they know it."
Originally reported by The Real Deal.
https://therealdeal.com/new-york/2025/09/25/brookfield-tacks-50-years-on-battery-park-city-ground-lease/