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, a major office and retail complex in Lower Manhattan. The revised lease extends the term from 2069 to 2119 and secures higher ground rent payments, which are expected to generate an estimated $1.5 billion in current value for New York City and the Joint Purpose Fund. This fund supports affordable housing development across the city.
“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,” said Governor Hochul. “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 Eric Adams stated, “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 Brad 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.”
The agreement highlights continued confidence in Lower Manhattan’s office market—Brookfield Place accounts for about 10 percent of its inventory—and builds on prior commitments such as a $500 million investment announced in 2024 aimed at building or preserving affordable housing.
Battery Park City Authority Chair Don Capoccia said: “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 commented: “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 the continued financial strength of lower Manhattan and Battery Park City but also advancing our mission to promote affordable housing citywide. We thank the Governor, Mayor, Comptroller and Brookfield for their partnership.”
Representative Dan Goldman said: “As we face a housing crisis in our city, I am grateful for this agreement between Battery Park City Authority and Brookfield Place that will add revenue to the Joint Purpose Fund ultimately contributing to increased affordable housing. BPCA and Brookfield Place share a common goal to invest and strengthen Lower Manhattan, and this agreement will support doing just that.”
Manhattan Borough President Mark Levine remarked: “This lease agreement represents exactly the kind of creative partnership we need to tackle Manhattan’s severe housing shortage. By securing $1.5 billion for affordable housing development, this agreement transforms commercial real estate success into tangible impacts for working families across our borough and the entire city. At a time when countless New Yorkers are struggling with skyrocketing rents and limited housing options today’s deal proves that strategic negotiations can generate substantial resources to build the affordable homes our communities desperately need.”
Councilmember Christopher Marte stated: “This agreement to renegotiate and extend Brookfield Properties’ ground lease is welcome news for Lower Manhattan and for New Yorkers across the five boroughs. By updating terms securing higher ground rent payments we’re not only ensuring continued presence but also generating critical revenue that can go directly toward building preserving affordable housing citywide It’s an important step forward community clear example how smart partnerships can strengthen local economy while addressing crisis”
New York State Homes & Community Renewal Commissioner RuthAnne Visnauskas said: “The financial stability created by this agreement will generate $1.5 billion that State City can invest together build preserve affordable housing neighborhoods every borough while also putting pieces place ensure remains economic powerhouse generations come The partnership Governor Mayor Comptroller BPCA shows role government generating results provide critical benefits residents businesses alike”
Carlina Rivera President & CEO NYSAFAH commented: “This groundbreaking agreement is model how smart public-private partnerships deliver real lasting benefits all Leveraging one premier commercial assets unlocking billions funding directly support development preservation across five boroughs NYSAFAH applauds leadership ensuring economic growth fuels greater equity opportunity”
Rachel Fee Executive Director NY Housing Conference noted: “Too often benefits thriving real estate market don’t reach families struggling most costs Securing stable revenues dedicating them leaders ensuring vital resources available create preserve urgently need decades come”
Jessica Lappin President Alliance Downtown NY added: “This deal represents kind creative forward-thinking partnerships reflects enduring vitality strength Downtown Alliance applauds leadership securing agreement”
Under terms of new arrangement Brookfield will pay higher ground rents which primarily flow Joint Purpose Fund supporting construction preservation throughout NYC Agreement establishes rent schedule under which both benefit from buildings’ performance replacing earlier arrangement predating commercial success complex now aligns interests incentivizes capital investment enables both realize gains estimated at $1.5 billion over term
Brookfield has invested approximately $900 million into upgrades at Brookfield Place over past decade—including renovations improved connectivity retail repositioning mechanical system enhancements—and plans more than $100 million additional capital improvements Several commitments accompany deal including emission reduction targets aiming net zero by 2050 enhanced sustainability reporting contributions up $2.5 million public realm improvements set aside space nonprofits meeting MWBE SDVOB goals on contracts
The BPCA owns land underlying neighborhood leases properties out; its financing structure funds maintenance open spaces beautification programming debt service as well as contributing excess revenues annually—primarily via Payments In Lieu Of Taxes (PILOT) general fund rest via ground rent allocated jointly by mayor comptroller authority Since 2010 excess operating revenues have helped fund over 10k units preserved built across five boroughs
Recent actions by BPCA include agreements expanding affordability protections at Tribeca Bridge Tower Tribeca Pointe Gateway Plaza These efforts underscore ongoing work stabilize community promote long-term affordability downtown
For further information visit bpca.ny.gov.
