THE PORT AUTHORITY OF NY & NJ

Press Release Article


PORT AUTHORITY ANNOUNCES AGREEMENT WITH THE DURST ORGANIZATION TO MARKET AND LEASE PORTION OF 4 TIMES SQUARE

Date: Dec 04, 2013
Press Release Number: 135-2013

The Port Authority Board of Commissioners today approved an agreement with The Durst Organization to market and lease 842,000 square feet of Condé Nast’s existing office space at 4 Times Square on behalf of the agency, beginning in January 2014.

Today’s action enables The Durst Organization, which is the owner and operator of 4 Times Square and also the Port Authority’s equity partner at One World Trade Center, to enter into leasing agreements at 4 Times Square with both short- and long-term tenants. The action will help mitigate the Port Authority’s rent obligation associated with the midtown space, which begins in early 2015 when the anchor tenant at One WTC— Condé Nast—begins its move to the WTC site.

“Conde Nast’s relocation to One World Trade Center in 2015 will generate considerable revenue for the Port Authority and, more importantly, it will attract significant private sector investment and economic activity to Lower Manhattan,” said Port Authority Chairman David Samson. “Today’s agreement with The Durst Organization to market and lease Conde Nast’s existing office space will leverage their expertise and knowledge of the facility to secure a replacement tenant in order to reduce the Port Authority’s rent obligations so we can continue to invest more in our airports, seaports, tunnels and bridges.”

“Attracting premier businesses like Condé Nast to One World Trade Center reflects industry confidence that the resurgence of Lower Manhattan is now a reality,” said Port Authority Vice Chairman Scott Recher. “As the owner of 4 Times Square with intimate knowledge of the building, the Durst Organization is best situated to mitigate our leasing exposure in connection with this landmark lease transaction.”

“This deal allows tenants to take long-term leases at 4 Times Square, one of New York’s premier office buildings, and puts some of the most desirable space in Midtown on the market for the first time since the building was completed in 1999,” said Jonathan (Jody) Durst, President of The Durst Organization.

The Durst Organization will act as exclusive leasing agent and will split with the Port Authority any rent from new leases at 4 Times Square through April 2019. Durst will also share certain costs such as expenses for tenant improvements and marketing. Assuming part of an existing lease is common when securing an anchor tenant for new construction. Condé Nast’s lease at One World Trade Center has served as a catalyst for the revitalization of not only the World Trade Center site, but also much of Lower Manhattan.

The Port Authority has reached 70 percent of its rent and income target for One World Trade Center, which is expected to be completed early next year. Tenants will include publishing giant Condé Nast, Vantone China Center, the U.S. General Services Administration, and Legends Hospitality, which will be developing and operating the building’s world-class observation deck.

CONTACT:
Port Authority of New York and New Jersey
212-435-7777

Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency’s network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where construction crews are building the iconic One World Trade Center, which is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov. Like us on Facebook or follow us on Twitter @WTCProgress for updates on the World Trade Center site.

The Durst Organization, founded in 1915 by Joseph Durst, is the owner, manager and builder of 13 million square feet of premiere Manhattan office towers. The Durst Organization is recognized as a world leader in the development of high-performance and environmentally advanced commercial and residential property.