Trade Center Developer Exercises Option to Lease 14 Floors to the CityBy THE ASSOCIATED PRESS
Published: February 25, 2011
The developer Larry A. Silverstein is taking up New York City on its offer to lease one-third of an office tower being built at the World Trade Center site.
Mr. Silverstein told the city last month that he was exercising his option to have the city government take on 14 floors of office space in the building, to be known as 4 World Trade Center, at a yearly rate of $56.50 a square foot, said a spokesman, Bud Perrone, on Friday. Although the developer is asking about 10 percent more for space at the nearby 7 World Trade Center, the decision guarantees him tenants for two-thirds of this building, because the Port Authority of New York and New Jersey has already agreed to move in as well.
“The city’s commitment to take space back in 2006 was one of the key steps that enabled development to move forward,” said Andrew Brent, a spokesman for Mayor Michael R. Bloomberg. The deal was part of an effort to spur stalled construction at the site.
Mr. Perrone said, “With the rebuilding now in full gear, the plan has clearly worked.”
The tower is expected to be completed in late 2013, but the city does not expect to move in until 2014. While the initial lease will be for about 15 years, it may be extended by 20 more. Mr. Silverstein was required to give at least 32 months’ warning that he wanted the city to occupy the space. His decision to exercise the option was reported on Friday afternoon on The New York Post’s Web site.
Construction at the site has been repeatedly bogged down by disagreements and a difficult real estate climate. While plans initially called for Mr. Silverstein to build three office towers at the site, he is now building just this tower to completion. A second tower can move ahead only after he has secured some tenants, and a third tower has been indefinitely postponed. Mr. Silverstein had hoped to lure private corporations at higher rents to 4 World Trade Center.
Another building, the 1,776-foot One World Trade Center — formerly called the Freedom Tower — is set to be completed in 2013.
http://www.nytimes.com/2011/02/26/nyregion/26wtc.html?ref=worldtradecenternyc
