In a move that reaffirms its longstanding commitment to Lower Manhattan, the Teacher’s Retirement System of the City of New York (TRS), one of the largest pension systems in the United States, is renewing its lease and expanding the Member Services Center at its headquarters at 55 Water Street. Savills Studley, the leading commercial real estate services firm specializing in tenant representation, arranged the 20-year transaction on behalf of the organization.
TRS will now occupy 191,138 square feet of the 53-story 3.8 million-square-foot downtown office building. The organization will reside in a portion of the 18th floor of the property the 2nd floor and the entire 16th and 17th floors. With the addition of part of the 18th floor, TRS is able to provide more space on the 2nd floor to enhance their Member Service Center. The new lease enables TRS to remain in the building until the year 2039.
As one of the largest downtown deals of Q4 2015 to date, Savills Studley was able to negotiate terms that will allow for capital improvements and renovations of TRS’ office space. The work will include a full build-out of the 18th floor, an upgrade to the member services area on the 2nd floor and a refresh of its entire space.
A Savills Studley team composed of Ira Schuman, Marc Shapses, Oliver Petrovic, Bill Montana, and Kurt Handschumacher, represented the tenant in the transaction. The landlord, New Water Street Corp., was represented by Howard Fiddle, Evan Haskell, Brad Gerla, David Caperna and Mary Ann Tighe of CBRE. Asking rents were $58 per square foot.
“It was important to TRS that its space not only allowed them to better serve the needs of the members, but also made the most fiscal sense. We were able to achieve this by negotiating competitive rates, the aggregate of which is lower than what was previously budgeted,” Schuman said.
Upon closing the transaction, Shapses commented, “After searching the entire market, including a study of where TRS membership lives, we utilized TRS’ longtime relationship in the building to create a win-win for both parties. This transaction gives stability to the ownership while the tenant receives an enhanced office environment and the room to grow membership services.”
George Acero, Executive Vice President and Chief Operating Officer of New Water Street Corp. said, “We are pleased that TRS has extended its commitment to downtown and 55 Water Street for another two decades. This is a reflection of the confidence in the Lower Manhattan market, the quality of our amenities and services and our unmatched waterfront location.”
Howard Fiddle, a Vice Chairman with CBRE said, “TRS’s commitment to renewing and expanding its Member Service Center at 55 Water Street is just another sign of the long-term confidence that tenants have shown in the vibrancy and growth of Lower Manhattan and 55 Water in particular. The ownership of 55 Water Street, has and continues to invest in the building to ensure it is meeting the needs of today’s workforce, which is why tenants are both attracted to the building and continue to grow and renew once in the building”
TRS will continue to benefit from the building’s advanced infrastructure and security features, including extended HVAC hours, emergency backup power, a 520-space parking garage, a public plaza and park, an on-site restaurant open to tenants, as well as access to all public transportation. Other major tenants in the building include McGraw Hill Financial, EmblemHealth, Hugo Boss, amongst others.
TRS provides eligible New York City educators with retirement, disability and death benefits. For more information, visit https://www.trsnyc.org/