The Metropolitan Transportation Authority (MTA) today announced that it intends to sell or lease nine parcels of MTA-controlled real estate in New York City, including MTA New York City Transit's former headquarters building at 370 Jay Street in Downtown Brooklyn. The move is part of an ongoing effort by the Authority to reduce costs and maximize the revenues it receives from real estate holdings. Last April, the MTA announced that it intends to sell or offer for long-term lease its headquarters building in Midtown Manhattan. In July, it announced plans to dramatically expand the footprint of retailing operations at Grand Central Terminal.
The MTA is preparing to issue requests for proposals (RFPs) for 370 Jay Street and the other eight properties. The RFPs will be issued jointly with the City of New York, which owns the properties and leases them to the MTA for a nominal amount.
"We are fully committed to deriving the maximum value we can from our real estate holdings, and I'm pleased that our thorough review of the properties we own or otherwise control in the City has turned up a number of opportunities," said Jeffrey Rosen, MTA Director of Real Estate. "All proceeds help pay for the MTA's critical Capital Program. While these revenues represent just a very small fraction of the MTA's capital funding needs, every bit helps."
In addition to 370 Jay Street, the MTA plans to issue requests for proposals for the following eight properties:
The MTA's review of its database of New York City properties included another 3,944 properties that are either not suitable for disposition because they are required for MTA operations or have value that could be monetized only when and if development were to proceed on adjoining, privately-owned parcels.
The MTA Finance Committee today was also apprised of challenges and potential benefits of allowing development atop five MTA facilities:
"We need to address these potential overbuild projects opportunistically as market conditions permit," Mr. Rosen said.
Today's presentation is the third of four planned presentations on maximizing the MTA's real estate holdings. The board discussed plans for right-sizing the MTA's office space portfolio in April and in July looked at the growing retail revenues from leasing at Grand Central Terminal. The MTA Finance Committee will hear a presentation on the MTA's suburban real estate holdings later this year.