After a period of controversy and scrutiny, the Department for the Aging in New York City will move its offices to 14 Wall Street in Lower Manhattan. The Department of Citywide Administrative Services (DCAS) finalized a 20-year lease for 81,000 square feet at the property owned by Alexander Rovt. The total value of the lease is $77 million.
During the first five years, the city will pay $33 per square foot. This rate will increase every five years, but is capped at $44 per square foot over the life of the agreement. The timeline for when the Department for the Aging will leave its current location at 2 Lafayette Street has not been disclosed.
“I evaluated the deal, and it was clear that 14 Wall St. was the best economic deal for the city,” said DCAS Commissioner Louis Molina.
The leasing process faced criticism due to concerns that officials favored a building owned by Rovt, who has contributed to Mayor Eric Adams’ campaigns and legal defense fund. Jesse Hamilton, former deputy commissioner at DCAS who resigned last month, was involved in office leasing controversies and faces corruption charges unrelated to this specific transaction.
Reports indicate Hamilton became involved in procurement discussions regarding this lease, steering it toward Rovt’s property despite an internal scoring system identifying AmTrust Realty’s 250 Broadway as a leading candidate.
A review conducted by DCAS concluded that proper procedures were followed during evaluation. The agency stated that leasing space at 250 Broadway would have cost taxpayers $16 million more than 14 Wall Street. Officials from the Department for the Aging also expressed a preference for relocating to 14 Wall Street.
Rovt’s political contributions include $9,200 to Adams’ mayoral and Brooklyn borough president campaigns and an additional $5,000 toward his legal defense fund. Members of Rovt’s family have also made donations to Mayor Adams.
