NYCEDC Announces First Round Recipients of the M-Core Tax Incentive Program

The New York City tax incentive program — Manhattan Commercial Revitalization Program (M-CORE) launched in May 2023, and intended to spark a transformation of Manhattan’s underperforming office buildings, recently awarded its first pair of recipients according to a joint press release by the New York City Economic Development Corp. (NYCEDC) and the New York City Industrial Development Agency (NYCIDA). The Midtown building at 850 Third Avenue was awarded a $58.4 million subsidy over 20 years, mostly to reduce property taxes. Currently about 33% occupied after losing its largest tenant, Discovery Communications in 2020, that percentage is anticipated to fall to 14% as leases expire over the next 4-years. Building ownership agreed to finance $62.8 million in renovations that will be more extensive as a result of the tax breaks. The second property located in Lower Manhattan at 175 Water Street is about 95% vacant and will get a $41.3 million tax break over 20 years. Plans by ownership to invest $150 million in the former global headquarters for American International Group, come with the “strategy of marketing the building as a ‘creative hub’ for businesses employing fashion, arts and cultural professionals.” Combined, the projects are expected to generate more than 2,113 jobs within three years and retain 365 more according to resolutions that the board of the NYCIDA was expected to vote on Tuesday, January 23.