The expected purchase would end a 280-year lease that gives MTA a one-time opportunity to buy the assets.
The purchase price of these assets is $35 million.
“This was a no-brainer, from a financial standpoint,” said MTA Chief Development Officer Janno Lieber. “We had to exercise the option to purchase or remain a tenant for another 270-plus years. And the interest rate environment – and the $500,000 discount offered by the seller – means it’s cheaper to buy it now than to pay rent for all that time. Equally important, this transaction secures for the MTA control over development rights along the Harlem Line and Hudson Line, which will allow us to help local jurisdictions implement high quality Transit Oriented Development for generations to come.”
MTA’s board is expected to approve the transaction on Thursday.