Innovative Leasehold Condominium Structure Provides Nonprofit With Cost-Effective Solution
February 20, 2024
NEW YORK CITY – OPEN Impact Real Estate LLC (OPEN) and Transwestern Real Estate Services (TRS) announce that the firms represented Selfhelp Community Services in its new headquarters lease for 45,689 square feet of space at 1180 Avenue of the Americas in Midtown Manhattan.
Selfhelp, a nonprofit serving 25,000 older and vulnerable adults through a complete network of home health care, affordable housing, and community-based services, will occupy the entire second and third floors of 1180 Avenue of the Americas. The unique transaction is structured as a 30-year leasehold condominium, which provides the nonprofit with significant cost savings by eliminating the real estate tax portion of the rent.
Thomas Hines, Senior Vice President of Transwestern and Stephen Powers, Lindsay Ornstein and Alex Smith of OPEN represented Selfhelp Community Services in the transaction. Bryan Boisi, Michael Baraldi and Harry Blair of Cushman & Wakefield represented the landlord, Northwood Investors LLC. In addition, Laura Sugarman of Benesch served as counsel for the tenant.
“Our strategic decision to pursue a leasehold condominium at 1180 Avenue of the Americas supports our organization’s broader real estate and financial goals,” said Stuart C. Kaplan, CEO of Selfhelp Community Services. “Our new headquarters lease will not only reduce our tax burden but also provide us with a high-quality, custom-designed space that supports our community members, both staff and clients, and meets our unique needs. We’re excited to see the new space come together.”
“Nonprofits are proactively rightsizing their office footprints after adopting new hybrid work policies—and are taking the opportunity to reimagine how they use their space to better support their needs,” said Powers. “Through hybrid work schedules and seat sharing, Selfhelp’s new space can accommodate more than 25 percent future growth while reducing their footprint.”
Selfhelp will work with building ownership, Northwood Investors LLC, and architect, Method Design, to design its new space, which will feature an efficient layout for improved collaboration and to support Selfhelp’s newly adopted hybrid work model.
“We were able to benefit from market conditions and secure Selfhelp a unique deal in a highly accessible location,” said Hines. “As one of the oldest and most respected nonprofits in the city, it was important to them to find a solution that would both represent the quality brand of the organization and remain cost-effective.”
Located in the heart of Midtown Manhattan, 1180 Avenue of the Americas comprises 379,000 square feet of office and 20,000 square feet of retail space. The boutique office building is close to all major transportation hubs as well as Bryant Park. Onsite amenities for tenants include access to conference facilities, event and donor engagement spaces, and a landscaped terrace on the building’s top floor.
OPEN has completed more than one million square feet of leasehold condominium transactions since the beginning of the pandemic, a growing trend that is expected to continue as nonprofits with clarity on long term needs look to capitalize on historically low office rents coupled with a tax savings that makes buildings like 1180 Avenue of the Americas affordable for established nonprofits---it’s a win-win.
According to research from Transwestern, as of the close of the fourth quarter of 2023, Midtown Manhattan’s office market consisted of 286 million square feet of space with 15.4 percent vacancy.
About Selfhelp Community Services
Selfhelp Community Services is a non-profit serving 25,000 older and vulnerable adults each year through home health care, affordable housing, and skilled social services while remaining the largest provider of comprehensive services to Holocaust survivors in North America. The organization’s overarching goal is helping older adults live with dignity and independence. Learn more at www.selfhelp.net and on LinkedIn at https://www.linkedin.com/company/selfhelp-community-services/.
About OPEN Impact Real Estate LLC
OPEN Impact Real Estate (OPEN) is a woman-owned business that delivers a comprehensive range of commercial real estate brokerage and advisory services, with a focus on supporting social-minded, mission-driven organizations. OPEN has the largest nonprofit practice in New York city and serves clients across the United States. OPEN is a certified M/WBE with deep expertise in furthering mission through physical space. OPEN is an affiliate of Transwestern Real Estate Services. For more information, please visit www.openregroup.com.
About Transwestern Real Estate Services
Part of the Transwestern companies, Transwestern Real Estate Services (TRS) strives to add value for investors, owners and occupiers across all commercial property types. Fueled by a holistic perspective of the real estate life cycle, agility and creativity are hallmarks of our approach, while vast national resources and sound market intelligence underpin customized recommendations and property solutions.
Five dynamic, integrated companies make up the Transwestern enterprise, giving us the perspective to think broadly, deeply and creatively about commercial real estate. Clients and investors rely on us for expertise that spans institutional and opportunistic investment, development, hospitality, and brokerage and asset services. Our award-winning, collaborative culture empowers team members with resources and independence to work across boundaries in pursuit of innovative solutions, reinforcing a reputation for service excellence that translates to measurable results. Through offices nationwide and alliance partners around the globe, we positively impact the built environment and our communities while fostering a work climate that champions career vitality for all. Learn more at transwestern.com and @Transwestern.
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