Nonprofit organization to occupy entire 5th floor at Class B, 569,160-SF office building; JLL sold original headquarters at 407 First Avenue to fund relocation, establish endowment
JLL has completed the relocation of The Institute of Career Development to 123 William Street. The nearly 100-year-old nonprofit organization signed a 10-year lease for 24,391 square feet at the Class B, 569,160-square-foot commercial office building.
The tenant, ICD, was represented by Paul Mas, managing director, and Ellen Herman, executive vice president, both with JLL. The building owners, East End Capital Partners and GreenOak US, were represented by Howard Fiddle, vice chairman, and Bradley Gerla, executive vice president, both with CBRE Inc.
“JLL advised ICD on property management issues it faced as the owner of its original 77,000-square-foot headquarters at 407 First Avenue, and then arranged the sale of the property this past year,” said Mas. “We were able to find an ideal new home for ICD at 123 William Street and then assisted the organization in building out its new space on the fifth floor of the building.”
ICD, formerly known as the International Center for the Disabled, signed a 10-year lease for 24,391 square feet of space and will occupy the entire fifth floor at 123 William Street, which is located between John and Fulton streets in Lower Manhattan. The institute is relocating to the building from its previous offices at 407 First Avenue.
“ICD was extremely pleased with the competency and professionalism displayed by JLL,” said Les Halpert, executive director, with ICD. “I have worked with three separate divisions of the organization and each group was available, responsible, efficient, knowledgeable and helpful. It was a refreshingly rewarding experience.”
ICD is a recognized pioneer in the field of rehabilitation and over the years expanded its scope of services to include a range of health and therapeutic services for people with disabilities. Mas began his current work with the institute in 2012, after its board of directors chose to return to its core mission of assisting people with barriers to employment. The board planned to relocate ICD from its original headquarters at the 77,000-square-foot 407 First Avenue to a new, appropriately designed space. The organization would use the proceeds from the sale of the building it had developed in 1964 to finance its relocation and establish an endowment for ICD.
Mas and the JLL team determined that ICD would need cost-efficient “value” space that had excellent subway access in a building that would accommodate a school environment. Following a thorough search of Manhattan, Brooklyn and Long Island City, the group determined that 123 William Street would meet all of the institute’s needs.
While Mas and the leasing team were searching for ICD’s new home, JLL’s Capital Markets group acted to dispose of 407 First Avenue for the institute. They were able to demonstrate the tremendous value of the redevelopment opportunity the building and adjacent parking lot represented. Jon Caplan, vice chairman, and Glenn Tolchin and Yoav Oelsner, executive vice presidents, represented ICD in the April 2013 sale of 407 First Avenue to Magnum Real Estate Group and 40 North Properties. The group achieved a sales price that was well in excess of the value the board had expected and what a pre-marketing independent appraisal indicated. The new owners are redeveloping the property as student housing for the School of Visual Arts.
East End Capital and GreenOak US, the owners of ICD’s new location at 123 William Street, acquired the 27-story property from Chetrit Group for $133 million in October 2013. Their purchase of the building in the midst of JLL’s efforts to bring the institute to the property added substantial uncertainty to the completion of the lease. The owners launched a multi-million capital improvement program at the building following the purchase, with the work including a new lobby, windows and elevators. The office building was designed by Emery Roth & Sons and constructed in 1957.
JLL served as project manager for the construction of ICD’s space on the fifth floor of 123 William Street, with the interior work completed and the organization moved into its new space in March 2014. The team overseeing the work was led by George Kaufmann, senior vice president, and included John Maguire, senior project manager, and Sarve Eshtehardi, associate project manager, with the firm’s Project & Development Services group.