Case Study
Legal Aid Society
Creating NYC’s New “Hub of Justice” at 49 Thomas Street
May 1, 2021
Overview
CBRE negotiated a “building within a building,” tax-exempt, 30-year leasehold condominium with “turn-key” office installation. In the wake of a pandemic that has victimized millions, Legal Aid will soon welcome New Yorkers to its new “Hub of Justice” at 49 Thomas Street.Legal Aid challenged CBRE’s team to help consolidate four downtown locations totaling 219,000 square feet into a single, more modern workspace, with the need to minimize out of pocket expenses and reduce long-term occupancy costs.
The Solution & Result
- Legal Aid’s Criminal Defense Practice caused landlord concerns regarding lobby traffic so CBRE focused on buildings we thought could create a “building within a building” via a dedicated entrance. These landlords would also need to be convinced to consider a leasehold condominium structure, which provides 501(c)(3) nonprofits with an exemption from paying real estate taxes.
- 49 Thomas Street, where Legal Aid already occupied 75,000 square feet, met key criteria but would require terminating several third-party tenant leases to create enough space to allow for the desired consolidation.
- Landlord agreed to renovate (turn-key) both Legal Aid’s existing premises and the expansion premises.
- Secured dedicated ground floor entrance with significant signage, as well as the creation of a “Kids Corner” and “Knowledge Center” library.
- Negotiated net effective rent in the mid $20s per SF, yielding over $1 million per annum savings relative to current cost.