SL Green Realty has entered into a 99-year ground lease at 126-132 Nassau Street in FiDi. The REIT intends to develop a new, 215,000-square-foot property on the site, and will demolish the existing office building (98,412 SF), according to a press release.
- Dig Deeper: Pace University has acquired a “30-year leasehold condominium” to occupy the entire development. The college will add classrooms, dorms, a library, a dining facility, and a learning center to its downtown campus. Pace owns the adjacent property at 41 Park Row.
- Leasehold condo explained: When a non-profit organization leases a non-residential property for at least 30 years, the ownership structure can be changed to accommodate for property tax savings. This is known as a “leasehold condominium”, which technically gives the organization legal title to the subject property thereby reducing the effective rent.