Real Estate Department
15 Thornwood Drive
Ithaca, New York 14850
Telephone. 607.266.7866
Facsimile. 607.266.7876
www.re.cornell.edu

New York, NY.  April 20, 2005  -  $31 Million Lease Extension for NYC ILR and CoOp Extension Space.

ILR and Co-operative Extension academic programs in New York City are secure in there 16 E. 34th Street home after Board approval and closing on the $31 million 4-year lease recasting and 10-year extension of their 51,000 SF of space owned by S.L. Green.

The space, on floors 4, 6 and 8 at 16th E. 34th Street, New York, New York pursuant to a 1993 lease, would have expired in January 2009. The Division of Extension and Public Service of the College of Industrial and Labor Relations runs their NYC educational programs out of the 4th and 6th floors, while Cooperative Extension’s New York City headquarters occupies the 8th. The building is in the Midtown South area of Manhattan (at Madison), convenient to the adult students who are ILR’s customers.

In 2004, in order to take advantage of the weak NYC market, Cornell engaged Newmark and Company to assist in the evaluation of the lease situation and to develop an appropriate strategy for space. Three scenarios were considered: purchasing or leasing in a new building at the end of the current lease term and a recast/early renewal of the current lease.

The most favorable scenario is a recast and early renewal of the current lease for an additional 10 year term. The proposal reduces the current rent by $4/SF and fixes rent for the future at competitive rates. While any future is uncertain, the New York City real estate market is already beginning to strengthen and the deal is estimated to save Cornell approximately $3.9M over the term of the lease versus negotiating a market renewal at lease expiration or acquiring our own space.

Both ILR and Cooperative Extension have committed the necessary funding for the 14 year commitment. The right to cancel in future years gives Cornell further flexibility.