FedCap Rehabilitation Services Inc., a New York City-based non-profit agency, has sold its longtime headquarters space and has relocated its executive offices to Midtown, nearly doubling the size of its current location. The transaction was arranged by global commercial real estate services firm Studley.
In an effort to upgrade the organization’s real estate portfolio, FedCap sold its existing 20,000 square foot headquarters space at 211 West 14th Street to a joint venture of Adellco and The Carlyle Group. In turn, the nonprofit organization purchased a 44,000-square-foot pre-built, class A, turnkey office space comprising the entire sixth floor at 633 3rd Avenue from the Union for Reform Judaism.
Executive Vice President and Co-Branch Manager, Ira Schuman, Managing Director, David Carlos, Corporate Managing Director, Bruce Rothman and Executive Managing Director, Kurt Handschumacher of global commercial services firm Studley, structured the deal in support of FedCap’s organizational and financial objectives. The search for a new office began more than a year ago and the organization sought turnkey space that required little capital expenditure. “In a transaction structure like this, nonprofits have a great advantage when owning their space because it gives the organization the ability to control costs,” Schuman said. “FedCap wanted to establish their presence in Midtown while continuing to own a portion of its real estate portfolio and grow its overall footprint.”
Established in 1935, FedCap is a nonprofit organization that provides paths to employment and economic independence through education, workforce development, occupational health services and economic development. The organization’s president and CEO, Christine McMahon, joined FedCap in 2009 and has led organization’s strategic growth, significantly increasing the nonprofit’s size as well as its service delivery and reach among people in need throughout the Northeast. The organization is governed by a volunteer board of directors.
Michele Arbeeny and Deborah Bindler of the law offices of Windels Marx Lane & Mittendorf, LLP represented FedCap in both transactions.