Governor Kathy Hochul, Mayor Eric Adams, and New York City Comptroller Brad Lander have announced a new agreement between the Battery Park City Authority (BPCA) and Brookfield Properties to modify and extend the ground lease for Brookfield Place, a 9.4 million square foot office and retail complex in Battery Park City. The updated lease will extend the term from 2069 to 2119 and secure higher ground rent payments, with an estimated $1.5 billion in current value projected for New York City and the Joint Purpose Fund. This fund supports affordable housing development throughout the city.
“This agreement not only ensures the stability of Battery Park City while building and preserving more affordable homes throughout New York City — it also uplifts the city’s economy by securing Brookfield Place for years to come,” said Governor Hochul. “My administration will continue to work with our private, city and local partners to promote affordable housing, economic growth and deliver only the best for New Yorkers.”
Mayor Eric Adams commented, “From the most jobs in city history to historic amounts of housing, the Adams administration has been relentless in creating a safer, stronger, more affordable city. Today’s announcement with Brookfield Properties doubles down on our success, laying the groundwork for another five decades of economic growth and new homes. I often say that New York City is not just coming back, we are back and better than ever, and agreements like this one show why. We will bolster Lower Manhattan’s role as a job creator for the entire city while investing billions of dollars in the housing New Yorkers need. That is a win for our city, state, and private partners.”
Comptroller Brad Lander added: “With this renegotiated ground lease, Battery Park City can increase long-term revenues through 2119 — continuing to thrive as an economic engine in Lower Manhattan — and continue to lay the groundwork toward financing affordable housing. Resilient design, environmental responsibility, and affordability are not trade-offs, but the blueprint for a fiscally and socially sustainable city for New Yorkers. Because of the partnership with the Governor, BCPA, and the Mayor, we are able to achieve progress toward our goals to strengthen economic activity, build affordable housing, and shore up the fiscal base in Battery Park City.”
The agreement comes as part of ongoing efforts by BPCA to secure long-term stability in Battery Park City through initiatives such as previous agreements preserving affordable apartments at Tribeca Bridge Tower and Tribeca Pointe.
Battery Park City Authority Chair Don Capoccia said: “Battery Park City Authority is glad to deliver this agreement for the future of affordable housing, for the future of downtown — for New Yorkers. I thank Governor Hochul, Mayor Adams, Comptroller Lander, our partners at Brookfield, and Raju and the BPCA team for securing this historic and impactful win.”
BPCA President & CEO Raju Mann stated: “This agreement is a powerful vote of confidence in the commercial vitality of New York. By extending and updating our lease structure with Brookfield, we’re not only ensuring the continued financial strength of lower Manhattan and Battery Park City but also advancing our mission to promote affordable housing citywide. We thank the Governor, Mayor, Comptroller and Brookfield for their partnership.”
Representative Dan Goldman expressed appreciation: “As we face a housing crisis in our city, I am grateful for this agreement between Battery Park City Authority and Brookfield Place that will add revenue to the Joint Purpose Fund ultimately contributing to increased affordable housing. BPCA and Brookfield Place share a common goal to invest and strengthen Lower Manhattan, and this agreement will support doing just that.”
Manhattan Borough President Mark Levine noted: “This lease agreement represents exactly the kind of creative partnership we need to tackle Manhattan’s severe housing shortage. By securing $1.5 billion for affordable housing development, this agreement transforms commercial real estate success into tangible impacts for working families across our borough and the entire city. At a time when countless New Yorkers are struggling with skyrocketing rents and limited housing options, today’s deal proves that strategic negotiations can generate substantial resources to build the affordable homes our communities desperately need.”
Councilmember Christopher Marte commented: “This agreement to renegotiate and extend Brookfield Properties’ ground lease is welcome news for Lower Manhattan and for New Yorkers across the five boroughs. By updating terms securing higher ground rent payments we’re not only ensuring continued presence of Brookfield Place but also generating critical revenue that can go directly toward building preserving affordable housing citywide. It’s an important step forward…”
New York State Homes & Community Renewal Commissioner RuthAnne Visnauskas highlighted: “The financial stability created by this agreement will generate $1.5 billion that State & City can invest together build preserve affordable housing neighborhoods every borough while also putting pieces place ensure Brookfield Place remains economic powerhouse generations come…”
NYSAFAH President Carlina Rivera called it “a model” public-private partnership delivering lasting benefits by leveraging major commercial assets.
Rachel Fee from NY Housing Conference emphasized how stable revenues dedicated specifically toward affordable homes ensure vital resources reach those most struggling.
Jessica Lappin from Alliance Downtown NY praised leaders’ roles in making such partnerships possible.
Brookfield Place represents about 10 percent of Lower Manhattan’s office market inventory; its extension follows previous announcements including a $500 million investment into the Joint Purpose Fund supporting new or preserved units across all five boroughs.
Under terms outlined by BPCA:
– The rent schedule allows both city/state governments benefit from strong building performance.
– Commitments include emission reductions targeting net zero by 2050.
– More than $100 million anticipated investment over several years follows $900 million already invested.
– Upgrades include community benefits like contributions up to $2.5 million public realm improvements West Street; set aside up 10k sq ft nonprofit/community offices; adherence MWBE/SDVOB contract goals.
BPCA owns all land within Battery Park City’s 92 acres; third-party buildings operate under sub-leases paying ground rent/PILOT fees which fund both neighborhood needs/general fund/affordable initiatives via excess revenue distributions determined jointly by mayor/comptroller/BPCA leadership.
Since 2010 these funds have contributed over $460 million toward building or preserving more than 10k units citywide.
The new arrangement replaces an older structure formed before full commercial success was established at Brookfield Place—aligning interests among stakeholders while incentivizing further capital investments into what remains one of NYC’s premier mixed-use complexes hosting major tenants such as Royal Bank Canada Jones Day Cadwalader Invesco People Inc Jane Street—and millions annual visitors.
