FiDi Building Locks in 640K-sf Lease with a City Agency
An undisclosed New York City agency has signed a 20-year lease for 640,000 square feet at 110 William Street in Lower Manhattan’s Financial District. According to Tel Aviv Stock Exchange documents, the new anchor tenant will pay an “annual rent of $44 per square foot (approximately $28 million per year once the total floor area is occupied), a rate scheduled to increase $4 per square foot every five years.” Initially 200,000 square feet will be occupied on a staggered timeline as improvements are finalized. The deal also includes an option to extend the lease for two additional five-year periods. In addition, a covenant that transfers the 40% stake owned by developer Savanna to Pacific Oak Capital Advisors, which already controls the majority 60% interest in the 32-story, 930,000-square-foot building; and as the sole owner, Pacific Oak would invest $110 million and $130 million in new equity into the building for the tenant. The building has struggled in recent years to fill vacancies created by the New York City Economic Development Corp. (NYCEDC), which vacated approximately 280,343 square feet in 2019 upon relocating to 222,000 square feet at nearby 1 Liberty Plaza, and the NYC Housing Development Corp (HDC) whose offices are now located at the Equitable Building, 120 Broadway. However, the recent signing enabled ownership to reach an “agreement to restructure more than $334 million in outstanding debt.”