City of New York Completes Lease Extension for 660,000-SF Hunts Point Terminal Market

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Jones Lang LaSalle completes three-year lease extension; world's largest produce market agrees to negotiate exclusively with city for nine months to devise long-term deal

This week global real estate firm Jones Lang LaSalle (JLL) handled the lease extension for Hunts Point Terminal Produce Cooperative Association Inc. with the City of New York. The world's largest produce market inked a three-year lease extension for 660,000 square feet of warehouse space on 107 acres of land in the Bronx.

The market was represented by Paul Mas, executive vice president, and Michael Shenot, managing director, both with Jones Lang LaSalle's New York office; along with a multidisciplinary team that includes members of the firm's New York and Parsippany, N.J., offices. The City of New York was represented by Seth Pinksy, president, with the New York City Economic Development Corp.

"There has been a great deal of interest in the Hunts Point Terminal Market project," said Mas. "We are pleased to be part of the effort to bring the two parties together on an agreement that ensures the facility will remain in the Bronx for at least three years. It also allows us to continue to work with the market over the next nine months in the hopes of coming to a mutually agreeable solution with the city to keep this important facility in the Bronx for the long term."

Hunts Point Terminal Market is a major employer and economic engine in the Bronx, where it operates out of four main refrigerated warehouse buildings of approximately 150,000 square feet each as well as two refrigerated expansion buildings. The market's 43-year lease expired on May 31, 2011, and the new agreement extends the lease for three years. The market will also negotiate exclusively with the city for the next nine months with the aim of coming to a long-term agreement that will include the construction of a new state-of-the-art facility.

"We are very pleased to have reached a solid agreement with the city," said Steve Katzman, co-president of the market. "We hired Jones Lang LaSalle primarily because of their ability to combine their industrial expertise and multiple real estate and construction services with their reputation of getting challenging public-private transactions done."

Mas and Shenot have completed many noteworthy transactions and projects for clients within the public sector, including the Metropolitan Transportation Authority, the Port Authority of New York and New Jersey, the Roosevelt Island Operating Corporation of the State of New York, the United States Postal Service, the New Jersey Economic Development Authority, the City of Newark, the City of Atlantic City and the Casino Reinvestment Development Authority.

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