In $1.5B Deal, Brookfield Extends Manhattan Lease with Battery Park City Authority
Brookfield and Battery Park City Authority have agreed to extend the ground lease for Brookfield Place, sparking controversy over the use of funds for affordable housing.
Brookfield Properties and Battery Park City Authority have reached a $1.5 billion deal to extend the ground lease for Brookfield Place, a 14-acre, 9.4 million-square-foot office and retail complex in the Financial District. While the agreement has been touted as a win for the city and state, it has also sparked controversy over the use of funds generated by the deal for affordable housing.
The lease term will be extended from 2069 to 2119, with the city of New York and the Joint Purpose Fund expected to receive $1.5 billion in higher ground rent payments. The fund supports affordable housing development across New York City’s five boroughs.
The deal also includes commitments from Brookfield to reduce emissions and contribute up to $2.5 million for improvements to West Street. The real estate giant will also provide 10,000 square feet of office space for community organizations and nonprofits.
Gov. Kathy Hochul, who signed off on the agreement along with Mayor Eric Adams, City Comptroller Brad Lander, and the BPCA, stated that the deal ensures the stability of Battery Park City while also providing more affordable housing for New Yorkers. However, critics have pointed out that the funds generated by the deal could potentially be used for other purposes.
According to