Creation of Tax-Exempt Leasehold Condo Structure at 270 Madison Opens Door to 41K-sf NY Public Library Deal

The New York Public Library’s (NYPL) Midtown branch will be relocating to 270 Madison Avenue, having signed a 33-year lease at the building located at the corner of East 40th Street. NYPL’s new 41,000-square-foot space spans the entire 11th through 13th floors within the 19-story building. To facilitate the transaction and enable the organization to apply for a real estate tax exemption, ABS Partners Real Estate created a leasehold condominium structure. Looking ahead, ABS plans to extend the model to other 501(c)(3) nonprofits seeking long term leases in the building that offers the convenience of its location three blocks south of Grand Central Terminal.