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Firm chosen as leasing agent for upper floors of extraordinary 16-floor, 1 MSF building undergoing redevelopment for industrial, research and development uses
NEW YORK, December 1, 2014 — JLL has been selected by the Brooklyn Navy Yard Development Corp. as the leasing agent for Building 77, a 1 million-square-foot building located on Flushing Avenue in the Brooklyn Navy Yard between Brooklyn’s DUMBO and Williamsburg neighborhoods. JLL will provide marketing and transaction services for the 16-story facility, which is currently undergoing a complete retrofit to accommodate industrial, research and technology uses.
The building, originally constructed as a warehouse that also housed offices for the U.S. Navy Central Command, offers 80,000-square-foot floorplates and extraordinary, unobstructed views of Manhattan, the East River, and Brooklyn waterfront. An anchor tenant will have the ability to incorporate a 20,000-square-foot roof deck with 360-degree panoramic views for its exclusive tenant use.
Photo credit: Spagnolo Gisness & Associates, Inc.
On November 17, New York Mayor Bill de Blasio announced a $140 million investment to transform Building 77 into a modern facility, anticipated to generate more than 3,000 jobs. The investment by the city, the BNYDC, and the Brooklyn Borough president and City Council, will be used to renovate and reposition the currently vacant industrial building. The renovation program significantly expands upon a larger initiative begun under the previous administration, now doubling the overall number of jobs at the site. It is anticipated that, when completed, Building 77 alone will increase overall employment at the Navy Yard by more than 40 percent.
The comprehensive redevelopment of the building is now underway with delivery for tenant fit-out anticipated by third-quarter 2016. The building will feature a new exterior and new window wall system, and it will be outfitted with fully modernized systems, state-of-the-art information technology systems, and redundant power and building services. The renovation will also feature new, double-height entrances and lobbies at both the north side of the building within the Navy Yard and at the south side of the building on Flushing Avenue. The building’s large floorplates will enable prospective tenants to create highly efficient and customized layouts.
JLL will focus on the upper floors of Building 77. The JLL team handling the leasing assignment includes Michael Shenot and Paul Mas, managing directors; Michael Berg, Edward DiTolla and Ruby Hwang, senior vice presidents; and Darren Ferguson, associate. The JLL team will work closely with the Brooklyn Navy Yard leasing team.
The project comes at a time when the existing 4.5 million-square-foot Navy Yard portfolio is 100 percent leased to more than 330 businesses. The Brooklyn market as a whole features strong market conditions, with limited space availability and continued appreciation of rental rates. Technology, media, design and research-oriented tenants have fueled high demand for space in Brooklyn. The Building 77 project will allow the Navy Yard to continue to provide a home for these tenant types, as well as modern manufacturing, research and development, and other creative industries.
“The Brooklyn brand has never been stronger, and the demand for space is white hot,” said David Ehrenberg, president and CEO of the Brooklyn Navy Yard Development Corp. “Building 77 presents an unparalleled opportunity for a tenant eager to join the unique ecosystem of manufacturing, technology and making at the Yard."
“Building 77 will offer many industries an attractive and affordable platform to fuel economic growth in New York City,” said Shenot. “Demand for space is strong among creative and emerging industries, and Building 77, with its Brooklyn Navy Yard location, provides access to a young and innovative workforce. Building 77 is a perfect solution for many of these firms. The project comes with the added benefit of economics that will result in tremendous savings over comparable locations.”
Tenants in Building 77 will be eligible for economic incentive programs and cost reduction benefits, including a tax and energy savings programs, the abatement of all real estate taxes for the entire life of the lease, and employment-based programs including Relocation and Employment Assistance Program benefits. JLL estimates the annual as-of-right incentives will provide annual savings of more than $15 per square foot. The building is also Foreign Trade Zone designated.
Building 77 stands at the Navy Yard’s southern edge with direct access to Flushing Avenue. The building is within minutes of a host of north Brooklyn neighborhoods, seven Metropolitan Transportation Authority subway stations and 16 MTA subway lines, and is directly adjacent to the Brooklyn Greenway that supports some of the highest bicycle traffic in the city.
The 300-acre Brooklyn Navy Yard generates more than $2 billion in annual economic output and features 4.5 million square feet of leasable office, manufacturing, and research and development space in 40-plus buildings, 330 businesses and 7,000 employees.JLL is a leader in the New York tri-state commercial real estate market, with more than 1,600 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2013, the New York tri-state team completed approximately 25.9 million square feet in lease transactions, arranged capital markets transactions valued at $2.1 billion, managed projects valued at nearly $7.0 billion, and oversaw a property and facilities management portfolio of 95.3 million square feet and an agency leasing portfolio of 67.0 million square feet.
About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
George Shea, Mark Faris