Goldman Sachs To Build New HQ Near WTC Site

[New Jack City]

Dow Jones Business News

Goldman to Build New Headquarters Near Trade Center Site

Thursday December 4, 1:52 am ET

It may be fashionable for Wall Street brokerage houses to move to midtown, but Goldman Sachs Group Inc. (NYSE:GS - News) is staying downtown, Thursday's Wall Street Journal reported. The company plans to build a 1.5 million-square-foot headquarters across from the World Trade Center site in lower Manhattan, according to a person briefed on the matter.

Among the firms that fled to midtown Manhattan or New Jersey after the Sept. 11, 2001, terrorist attacks, were Lehman Brothers Holdings Inc., which moved its operations to midtown from the World Financial Center, and Morgan Stanley, which had operations in the Trade Center and relocated hundreds of staff to midtown and elsewhere. Adding to the pressure on downtown real estate, the financial- services industry -- downtown's historic anchor -- was hit hard by the tanking stock market, and layoffs numbered in the thousands.

Goldman is pushing ahead with plans to build downtown because it is facing lease expirations on three of the buildings it occupies in the area, including its headquarters on Broad Street, according to the person familiar with the firm's thinking.

Vacancies in the downtown market stood at 13% for the third quarter, more than double the number before Sept. 11, according to Cushman & Wakefield, a New York commercial real-estate services company, but the availability rate (which includes extra space companies are trying to sublease) is 3% to 4% higher.

[RafflesCity]

OMG! Another skyscraper!! Hope it will be at least 50 floors.:dooby:

[Gulcrapek]

I'd think it would have to be around that, I have to find out how big the site is (assuming it's #26 in BPC)

[Gulcrapek]

Ok, I just checked aerials of Site 26... it's a big site. Around the same size as the footprint of a WFC tower. So probably anywhere from 37-50 floors.

[Gulcrapek]

Another post... eh...

According to to kliq6 at WNY, who has an inside look at a lot of developmnents, the site is in fact Site 26.

[JMGarcia]

Its in the upper left corner in this site plan outlined in dotted red lines.

[AtlanticaC5]

It sounds great! Rendering soon?

[lokinyc]

Weird. They built that gorgeous tower on Jersey City's waterfront, abandoned it, and now want to build downtown? Oh well, at least it's another skyscraper for the Financial District.

[RafflesCity]

Originally posted by lokinyc

Weird. They built that gorgeous tower on Jersey City's waterfront, abandoned it, and now want to build downtown?

Yes it sounds crazy. At least that gorgeous tower in Jersey City stands out. Hope this one is equally good looking.

[New Jack City]

Here's a more clear map on it's location:

[New Jack City]

NY TIMES.

Goldman Asks for Grants for Downtown

By CHARLES V. BAGLI
December 12, 2003

Three years ago, Goldman Sachs decided to build the tallest and most expensive skyscraper in Jersey City — a development that left New York officials fuming over the snub.

That 42-story, $1.3 billion tower is now nearing completion, but the investment bank is having trouble finding anyone to move into it. Faced with an unpopular new building across the Hudson, Goldman Sachs emerged suddenly last week with a new plan: to build a 1.5-million-square-foot tower in Lower Manhattan, directly across from ground zero.

And as it did in New Jersey, Goldman Sachs is seeking subsidies to build in New York, where its headquarters have long been located.

The investment bank has spurned suggestions that it move into 7 World Trade Center, the tower Larry Silverstein is building, or the so-called Freedom Tower, the 70-story building that is to be the centerpiece at ground zero. Neither of the buildings, which will have a total of 4.3 million square feet of office space, has a tenant.

Instead Henry M. Paulson, the firm's chairman, has told the governor and the mayor that Goldman wants its own tower, on what is known as Site 26 at Battery Park City, and wants some of the same cash grants, tax breaks and tax-free financing that are available downtown right now, according to state and city officials who are working with the bank.

"It's heartening that Goldman has decided to build in Lower Manhattan," said Harvey Robins, a mayoral aide to Edward I. Koch and David N. Dinkins. "But in terms of their planning, Jersey has turned into one big folly. Goldman squeezed Jersey for tax breaks and now they're not missing a beat in looking for subsidies on this side of the river."

Goldman itself declined to discuss its plans in New York.

"We're exploring a number of options," said Bruce Corwin, a spokesman for the bank, "but we're committed to remaining in downtown Manhattan."

State and city officials and downtown executives have embraced Goldman's proposal, although negotiations are expected to go on for some time. "I'm thrilled Goldman is committed to building a new headquarters downtown," said Carl Weisbrod, president of the Alliance for Downtown New York. "It's not only directly important in terms of Goldman's prestige and number of employees, but it's also a signal to others to consider building on the World Trade Center site and elsewhere in Lower Manhattan."

But even those who welcomed Goldman's initiative also marveled at the bank's "hubris."

Goldman bought the land in 1999 for the tower in Jersey City — one of three development parcels it acquired at the site of the old Colgate toothpaste factory — at a time when Wall Street was booming and the bank had doubled the size of its work force and its real estate holdings in Lower Manhattan. There was talk of building a trading floor and creating a training center.

Good building sites were unavailable downtown, Goldman executives said at the time in explaining their decision to jump across the Hudson River. What was also available in New Jersey was more than $160 million in tax breaks over 10 years.

Early in 2002, the company told employees that it would move equity sales and trading operations, as well as researchers and data departments, to its 875-foot tower under construction in Jersey City. That set off an insurrection by traders who did not want to be cast off to New Jersey, according to banking and real estate executives.

At the same time, a downturn in the economy prompted Goldman to scrap plans for a second building in Jersey City and to cut 13 percent of its work force. The bank currently leases a total of about four million square feet in nine buildings in Lower Manhattan, although not all of it is occupied.

It recently negotiated a deal to pay the landlord at 10 Hanover Square near Wall Street $40 million to cancel its lease next September, according to real estate executives who were briefed on the talks. And last summer, with the cost of its new tower mounting, Goldman tried to lease it to Mellon Financial Services. Instead, real estate brokers say, Mellon appears close to leasing a different office tower in Jersey City that UBS is no longer moving into.

Mr. Corwin of Goldman Sachs said the bank now planned to move "a few thousand" employees into the Jersey tower, a building that could accommodate more than 6,000 workers, beginning in April. Brokers say that at least for now, the bank will occupy only about a quarter of the tower, although one Goldman banker said that half the building would be in use by next fall.

"Goldman's intention is to occupy about 350,000 square feet and mothball the rest," said a top real estate executive in New York who deals with the investment bank. But that has not stopped Goldman from thinking about consolidating its operations in Lower Manhattan, where it is spread across nine buildings. Given the tax incentives available for rebuilding downtown and the tax-free Liberty Bonds available for new construction, the bank focused on a new headquarters at Site 26, at the north end of the World Financial Center.

The parcel offers an unobstructed view of its Jersey City tower one mile to the west, which the company hopes will convince employees consigned to New Jersey that they are still in the mix as Goldman consolidates its operations into a tower on each side of the river over the next five years.

"They're having difficulty getting people to go to Jersey City," said one developer who has talked to Goldman. "If they get Site 26, they could run their own private ferry between the buildings."

[RafflesCity]

They sure have a lot of money to throw around! At least its used for building scrapers

[New Jack City]

NY Post

GOLDMAN, BROOKFIELD BUTT HEADS ON HOT LOT

By WILLIAM NEUMAN

February 19, 2004 -- A heavyweight showdown is brewing over an empty lot next to Ground Zero that two downtown powerhouses covet as a site for a new skyscraper, The Post has learned.

Goldman Sachs has been in talks with the Battery Park City Authority to build a 1.8 million-square-foot office tower on the lot, known as Site 26, at the northwest corner of West and Vesey Streets.

But Brookfield Properties, downtown's biggest landlord and the owner of the World Financial Center, has long claimed development rights to the site, and could stand in the way of Goldman's plans.

Battery Park City took Brookfield to court in March 2001, challenging the powerful real estate firm's claims to the property, but the legal action was dropped without being resolved after the 9/11 attacks.

Both Goldman and Brookfield declined to discuss the talks.

[AtlanticaC5]

Who will take it, Goldman or Brookfields? Hmm....hopefully the one with the tallest building

[New Jack City]

Good news, the tower's height is planned for 800 feet/243 meters!

Battery Park City Broadsheet

Goldman Sachs and BPCA Talk Big

While Downtowners Question a 360-Foot Building, Plans Progress for an 800-Foot Tower Two Blocks Away

Environmental Impact Statement for Site 26 Close to Completion

Goldman Sachs and the Battery Park City Authority are making progress in negotiations to build on site 26, the large lot next to Embassy Suites bounded by West, Vesey and Murray Streets. According to a BPCA spokesperson, a draft environmental impact statement (EIS) on the 800-foot tall building is expected to be completed by the end of this month, and will come before Community Board 1 in early April.

Paid for by Goldman Sachs, the statement is being prepared by Allee, King, Rosen & Fleming, environmental consultants for the Lower Manhattan Development Corporation on the EIS for the World Trade Center site, and, several years ago for the BPCA on development plans for northern Battery Park City. Said one BPCA executive in reference to the Goldman Sachs EIS for site 26, “we’re on an extremely tight schedule. If the project goes forward, we expect to be done by the end of this month.”

The future building will offer 1.5 million square feet, and is envisioned to be the new world headquarters for Goldman Sachs. Even though published reports say its recently completed Jersey City skyscraper stands partly empty, the company is negotiating for tax breaks and subsidies to build in Battery Park City.

[AtlanticaC5]

Whoa, 243 m!! Build!!

[7 World Trade]

that's really tall, 243 meters. hopefully it won't be some boring glass curtain wall. it'd be cool if the new tower can complement the wfc really well...

about time they do something with that lot. it's such a prospective site, and i wonder why they didn't bother to build something tall there earlier. once they build it the wtc complex will be completely surrounded by skyscrapers!

[Agglomeration]

Well at least Goldman Sachs will not move into the proposed Freedumb Tower, which means less profit for Silverstein and the LMDC.

[New Jack City]

NY Times

Despite Its Jersey City Tower, Goldman Sachs Commits to One in Lower Manhattan

GBy CHARLES V. BAGLI

Published: April 17, 2004

Goldman Sachs is forging ahead with plans to build a billion-dollar, 40-story world headquarters at Battery Park City just as it completes construction of New Jersey's tallest building a mile away in Jersey City.

The tower represents a major commitment to Lower Manhattan by one of the financial district's largest employers at a time when the downtown area is undergoing a huge rebuilding process. But Goldman has rejected repeated suggestions from state and city officials that it consolidate its operations in the so-called Freedom Tower, the first building planned for the World Trade Center site.

Instead, the bank picked a spot northwest of ground zero, on West Street, between Vesey and Murray Streets. It is the last vacant commercial parcel at Battery Park City, and Goldman's skyscraper would be the fifth and last tower at the World Financial Center.

One of the most profitable investment banks on Wall Street, Goldman has also sought more than $1 billion in tax-free financing called Liberty Bonds and $30 million in cash grants, as well as low-cost electric power and tax breaks. The investment bank plans to consolidate the trading and sales operations now spread between 85 Broad Street, its current headquarters, and 1 New York Plaza. The leases in those two buildings expire in 2008 and 2009; Goldman wants a new home by 2008, the bank has told state and city officials.

"I'm hopeful that we'll come to an agreement to retain Goldman in Lower Manattan," said Charles A. Gargano, chairman of the Empire State Development Corporation. "It's important for the continuing strength of the financial community and it'll send a strong message that downtown is the place to be."

Mr. Gargano declined to comment on negotiations with the bank.

But two executives familiar with the talks said that the state had resisted what they said were Goldman's oversize demands and continued to urge the bank to move to the trade center. They said that Henry M. Paulson, Goldman's chairman, had called Mr. Gargano several times complaining about the sluggish pace of the bargaining. The pace picked up two weeks ago, and yesterday, state and city officials delivered a proposal to the bank that included about $1 billion in Liberty Bonds, one of the executives said.

The Battery Park City Authority is expected to approve the project's environmental impact statement on Wednesday and the project is expected to begin the city's land use review process on April 26.

The bank has also been negotiating with Brookfield Financial Properties, which owns the World Financial Center and has certain rights connected to the parcel sought by Goldman, known as Site 26. Brookfield had wanted to develop the site, a suggestion rebuffed by the bank. The two sides have been trying to work out an accommodation, which, according to one person who had been briefed on the discussions, would involve some sort of payments to Brookfield.

Designed by Pei, Cobb, Freed & Partners, Goldman's proposed tower would mark a break with the four bulky, boxy office buildings at World Financial Center, which were built in the 1980's. The proposed building, which the company has said would meet or exceed the special environmental or green standards at Battery Park City, is a rectangular tower with a slender face to the north and the south, while the west wall offers a broad curving, or pie-shaped, facade to the Hudson River.

The building site is nearly two acres and sits just north of the American
Express Tower and adjacent to a hotel and movie theater. The size of the site allows Goldman to stack six large trading floors at the base of the building, as well as floors with a gym, cafeteria and conference rooms, topped by a tower.

Goldman, which has about 10,000 employees in Manhattan, has moved with remarkable speed since December, when Mr. Paulson called Governor George E. Pataki and Mayor Michael R. Bloomberg to say that the bank wanted to build its own tower at the World Financial Center. The two embraced the project, although state and some city officials had been upset with Goldman ever since 1999, when it bought land near the Jersey City waterfront for a new set of buildings.

"They moved jobs out of New York," said one real estate executive. adding that "Nobody's ecstatic" about having to bend over backward to help Goldman, "but what could they do?"

Plans to transfer traders to the 40-story, $1.3 billion tower in Jersey City had to be scuttled after the proposal touched off an insurrection inside the bank. Two weeks ago, Goldman began moving the first of what it expects will be 2,500 employees into the building. It can accommodate more than 6,000 people.

"As one of the largest and most prestigious businesses in the city," said Carl Weisbrod, president of the Alliance for Downtown New York, "Goldman Sachs's decision to build and own property immediately adjacent to the trade center site will be an invitation to other firms to move to the site itself."

[New Jack City]

NY POST

GOLDMAN PUSHES FOR 'GREEN' TOWER

By WILLIAM NEUMAN

April 17, 2004 -- Goldman Sachs is pushing ahead with plans for a 2-million-square-foot downtown office tower that would have a rounded glass façade overlooking the Hudson River and environmentally friendly features that could make it one of the first of a new wave of "green" commercial buildings.

Although it has yet to work out a deal to lease the plot of land where the tower would go - catercorner from Ground Zero at Vesey and West Streets - Goldman has gone so far as to pay for architectural plans and a $350,000 environmental impact statement being prepared by the site's owner, Battery Park City Authority.

The firm has also submitted a zoning proposal for the site to the city's Planning Dept., which is scheduled to vote on the project next Monday.

Goldman entered into negotiations with the BPCA for the site late last year, but the deal was complicated by a long-running feud between Battery Park officials and Brookfield Properties, which owns the World Financial Center.

Brookfield claims that it controls development rights to the parcel - the last commercial site in Battery Park City.

That set the stage for a battle of the titans between Goldman and Brookfield, but while the two began discussions with dramatically divergent positions sources said progress has been made toward a deal under which Brookfield would receive a substantial fee to relinquish its claim.

BPCA head Tim Carey said that his planners are working closely with Goldman and that even if that deal falls through, the proposed rezoning of the site would pave the way for a bidding process that could draw another developer.

Sources familiar with the project said the Goldman tower is being designed by architect Harry Cobb, who created the John Hancock Tower in Boston. Cobb's EDF Tower in Paris has curved lines that are said to evoke his design for the Goldman building.

The tower, described as a minimalist glass structure with a rounded riverfront façade, will be 700- to 800-feet tall, with 40 stories and 2 million square feet of office space. It will house Goldman's headquarters and its trading floors, which are currently spread over three different locations in lower Manhattan.

It is being designed to meet Battery Park City's cutting edge green building requirements, which call for ecologically friendly materials and advanced energy and water conservation.

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EDF Tower in Paris...