NYPA Seeks New Corporate HQ In Downtown White Plains CBD

By JOHN JORDAN – December 18, 2023

WHITE PLAINS—The New York Power Authority is currently reviewing proposals for a brand new 250,000-square-foot Class A state-of-the-art corporate headquarters in Downtown White Plains and a decision on the utility’s new site requirement could come in three to four months.

One of the options the New York Power Authority is considering is financing a build-to-suit headquarters building in Downtown White Plains along with a sale or partnership for its more than 400,000 square-foot existing office building for possible redevelopment. If those deals were finalized, it is expected to be valued in the hundreds of millions of dollars in investment and economic benefit to the city and region.

The firm, currently headquartered at 123 Main St. in Downtown White Plains, issued a Request for Proposal on Aug. 18 and is currently reviewing multiple proposals it has received, according to a number of knowledgeable real estate sources. The due date on the New York Power Authority’s RFP was Nov. 17 and developer interviews are scheduled for this month and January 2024. The company currently employs approximately 900 workers at its White Plains office building. The RFP is explicit in that the company’s search for a new corporate headquarter site is limited to the White Plains Central Business District.

The New York Power Authority’s headquarters at 123 Main St. in Downtown White Plains.

According to the RFP, although the Power Authority cautioned prospective proposers that dates could be subject to change, the company hopes to make an award in February or March of 2024 and have the project substantially completed by June 2028.

The company’s RFP offers prospective developers two options: “Option A — Propose an acquisition solution for a new purpose-built state-of-the-art Class A office headquarters within the White Plains central business district market.” “Option B—Propose a disposal offer for NYPA’s current property at 123 Main Street, White Plains, New York, 10601.”

In terms of the new corporate headquarters requirement, NYPA appears to be set in owning the new facility and states in the RFP that it is “prepared to provide funding to support the acquisition, development, and construction of Option A.” It later added that in connection with the new corporate headquarters building it would entertain a new construction commercial condominium.

In connection with its disposal of 123 Main St. NYPA would consider a fee-simple sale of the 2.7-acre site within three to six months of selection with a five-year favorable leaseback to NYPA; an option agreement for a fee simple sale with an upfront payment and extension terms and closing prior to NYPA vacating the structure (upon completion of Option A); or a development agreement and ground lease with an upfront payment to NYPA, fixed base rent, participation rent, and capital event participation for a sustainability-forward project.

The New York Power Authority spelled out its intentions in the RFP by stating: “It is intended that any development proposed for Option A does not incorporate the existing property at 123 Main Street as this has been deemed not feasible due to cost and employee impact concerns. For Option B, NYPA is seeking a development partner to purchase, ground lease, or propose a mutually beneficial ownership structure with NYPA for all or a portion of the 123 Main Street property.”

The company added that the solicitation could allow NYPA to select a qualified developer “with which it may negotiate and enter into one or more definitive agreements for a complete turn-key solution to develop and relocate NYPA to its new White Plains Building.” The existing 123 Main St. building rises 16-stories and totals 417,014 square-feet with an integrated six-story, 700-space parking structure. The office property was built in 1981 and acquired by NYPA in 1991.

Sources say it is believed that NYPA received a number of proposals from developers/property owners in Downtown White Plains in response to the RFP, including one from Cappelli Development, which is a partner in two major redevelopment projects in Downtown White Plains—the $2.5-billion redevelopment of the former Galleria Mall (Galleria District) and the $650-million redevelopment of the former White Plains Mall (Hamilton Green).

A spokesman for Cappelli Development told CONSTRUCTION NEWS that the firm is aware of the NYPA solicitation, and that the company did submit a proposal in response to the RFP. The spokesman did not provide details on Cappelli’s RFP response. The identities of other bidders were not known at press time.

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