HDC Condo Leasehold Deal Opens Door to Real Estate Tax Abatement

Relocating to the building in 2022, the New York City Housing Development Corporation (HDC) recently closed on a 30-plus year condominium leasehold deal at the Equitable Building located at 120 Broadway. The roughly $52.695 million transaction for the semi-public agency’s 109,000-square-foot space spanning the entire 2nd and 3rd floors within the Lower Manhattan building makes the HDC eligible for the nonprofit real estate tax abatement. Although a complicated transaction from a legal standpoint, that not all buildings have the ability to do, the condominium conversion finalized in November 2023 per city records sweetens the deal for both sides, the HDC benefiting from the tax abatement and the landlord securing a long-term tenant. Back in December 1993 a condominium unit spanning 107,504 square feet across the 5th through 7th floors had been created, but simultaneously to the creation of the HDC unit, it was split into four smaller units ranging in size from 15,697 square feet to 42,928 square feet, perhaps sparked by the current office leasing environment.

Source:    https://commercialobserver.com/2024/04/nyc-housing-development-corporation-pays-120-broadway-commercial-condo-leasehold/