NEW YORK CITY — The Federal Reserve Bank of New York has purchased 33 Maiden Lane in New York City for $207.5 million.
The New York Fed is the building's major tenant. The bank has occupied about 75 percent of the office space in the 27-story building since 1998, and more than 1,000 Fed employees currently work there.
The acquisition was reportedly a cheaper alternative to leasing the space on a long-term basis and will give the bank greater control of its operations.
“The purchase is a cost-effective way to meet our business needs and will enable us to more easily ensure appropriate security for our operations,” said William Dudley, president of the New York Fed in a prepared statement. “We are also pleased to contribute, through our investment, to the ongoing revitalization of lower Manhattan.”
Both the New York Fed's board of directors and the Board of Governors of the Federal Reserve System approved the acquisition of 33 Maiden Lane.
The New York Fed is one of 12 banks in the U.S. Federal Reserve system and is where Washington monetary policy is implemented. The 600,000-square-foot 33 Maiden Lane is near the bank's headquarters, located at 33 Liberty St.
Darcy Stacom, William Shanahan and Paul Gillen of CBRE's New York office represented the seller, Invesco Real Estate, in the transaction.
“With its headquarters building located across the street, this was an excellent purchase by the Federal Reserve,” said Stacom in a press release. “The great level of interest that the property received is a clear indication of increased capital flows into the downtown market.”
— Liz Burlingame