Governor Kathy Hochul, Mayor Eric Adams, and New York City Comptroller Brad Lander have announced a new agreement between the Battery Park City Authority (BPCA) and Brookfield Properties to modify and extend the ground lease for Brookfield Place in Lower Manhattan. The office and retail complex spans 9.4 million square feet. Under the new terms, the lease will be extended from 2069 to 2119, with higher ground rent payments projected to generate an estimated $1.5 billion in current value for both the City of New York and the Joint Purpose Fund. This fund supports affordable housing development throughout New York City.
Governor Hochul stated, “This agreement not only ensures the stability of Battery Park City while building and preserving more affordable homes throughout New York City — it also uplifts the city’s economy by securing Brookfield Place for years to come. My administration will continue to work with our private, city and local partners to promote affordable housing, economic growth and deliver only the best for New Yorkers.”
Mayor Adams said, “From the most jobs in city history to historic amounts of housing, the Adams administration has been relentless in creating a safer, stronger, more affordable city. Today’s announcement with Brookfield Properties doubles down on our success, laying the groundwork for another five decades of economic growth and new homes. I often say that New York City is not just coming back, we are back and better than ever, and agreements like this one show why. We will bolster Lower Manhattan’s role as a job creator for the entire city while investing billions of dollars in the housing New Yorkers need. That is a win for our city, state, and private partners.”
Comptroller Lander added: “With this renegotiated ground lease, Battery Park City can increase long-term revenues through 2119 — continuing to thrive as an economic engine in Lower Manhattan — and continue to lay the groundwork toward financing affordable housing. Resilient design, environmental responsibility, and affordability are not trade-offs, but the blueprint for a fiscally and socially sustainable city for New Yorkers. Because of the partnership with the Governor, BCPA, and the Mayor, we are able to achieve progress toward our goals to strengthen economic activity, build affordable housing, and shore up the fiscal base in Battery Park City.”
Brookfield Place represents about 10 percent of Lower Manhattan’s office inventory. The updated agreement follows a previous $500 million investment into affordable housing initiatives announced by Governor Hochul’s administration alongside other city leaders.
Battery Park City Authority Chair Don Capoccia commented: “Battery Park City Authority is glad to deliver this agreement for the future of affordable housing, for the future of downtown — for New Yorkers. I thank Governor Hochul, Mayor Adams, Comptroller Lander, our partners at Brookfield, and Raju and the BPCA team for securing this historic and impactful win.”
BPCA President Raju Mann stated: “This agreement is a powerful vote of confidence in the commercial vitality of New York. By extending and updating our lease structure with Brookfield we’re not only ensuring continued financial strength… but also advancing our mission to promote affordable housing citywide.”
The deal also includes commitments from Brookfield on sustainability—such as aiming for net zero emissions by 2050—and capital investments exceeding $100 million over several years intended to maintain Brookfield Place as a top-tier property.
Community benefits include up to $2.5 million allocated by Brookfield toward public improvements along West Street; provision of up to 10,000 square feet of office space dedicated to nonprofits; plus adherence targets related to contracts awarded through Minority- or Women-Owned Business Enterprises (MWBE) or Service-Disabled Veteran-Owned Businesses (SDVOBs).
New York State Homes And Community Renewal Commissioner RuthAnne Visnauskas said: “The financial stability created by this agreement will generate $1.5 billion that State & City can invest together…while also putting pieces in place so Brookfield Place remains an economic powerhouse…”
Since its establishment in 1968 as a public benefit corporation charged with developing Battery Park City’s mixed-use neighborhood—including parks—the BPCA has used revenue from such leases both locally within Battery Park City itself as well as supporting wider municipal needs like open space maintenance or debt service funding.
Revenue collected from these leases flows first toward BPCA operating costs before excess funds are distributed annually—about 80 percent goes into NYC’s General Fund while remaining funds support joint purposes such as affordable housing decided upon jointly by officials including Mayor Adams & Comptroller Lander.
Over recent years BPCA has executed similar agreements focused on maintaining affordability at residential properties within its area—including Tribeca Bridge Tower & Gateway Plaza—helping preserve thousands of units across multiple boroughs since 2010.
