Originally posted by Clive: | 15 Jan 2011 , 08:16 AM | This information is really good. A ton of lies to sift through...
NET LEASE OF WORLD TRADE CENTER JUST BUSINESS AS USUAL FOR PORT AUTHORITY\'S REAL ESTATE DIRECTOR
-- Cherrie Nanninga Credited with Shepherding Office, Retail Renaissance At Trade Center, Other Port Authority Facilities
Date: February 12, 2001
Press Release Number: 16-01
Subcategory: World Trade Center
When Port Authority Real Estate Director Cherrie Nanninga enters her 88th floor office each day, she passes a model of the World Trade Center, a stark reminder that she is in charge of the largest real estate transaction in New York history.
The scale and complexity of the negotiations are astonishing. The complex has 10.4 million square feet of office space, 10 percent of all of the office space in downtown Manhattan. There are 400,000 square feet of stores selling upscale clothing, books and food - enough to keep Main Street bustling in a small town. And the world-famous landmark has offices for 40,000 workers.
"It's a considerable challenge, and the task is comparable to the sale of a small city," Mrs. Nanninga said of the trade center net lease. "But fortunately, there are a lot of good people working on it. The best way to maximize the value of the trade center is to just keep moving in the right direction."
"Cherrie's dedication and business acumen have allowed this important real estate transaction to remain on track," said Port Authority Executive Director Robert E. Boyle. "Through her leadership, she has made the World Trade Center a place where companies and retailers want to locate."
Mrs. Nanninga's focused, businesslike approach to the intense discussions on the trade center net lease is typical of her management style. And the trade center lease has been the biggest challenge of her career, which began as a bilingual Spanish teacher in Boston in the early 1970s and culminated when she joined the Port Authority in 1976 and quickly rose through the ranks.
As Real Estate Director, a position Mrs. Nanninga has held since 1996, the occupancy rate at the trade center has risen from 78 percent to a healthy 98 percent, retail soared in the trade center's mall, and available office space in the Newark Legal Center has nearly been filled.
Today, only about 250,000 of the 10.4 million square feet of office space in the trade center remains vacant. And the legal center has an occupancy rate of over 99 percent.
"The challenge to me and the staff of the World Trade Center was to improve the service we provide to tenants, and to bolster our reputation in the marketplace," Mrs. Nanninga said. "We've been told by our tenants and the real estate industry that we have really turned this place around, and we are starting to believe it. But we continue to be very focused on our tenants' needs."
Sales at the trade center's retail mall also have risen dramatically. In 1996, the mall's retail establishments averaged approximately $500 per square foot. Today, sales have doubled, and are expected to reach $900 per square foot by the end of this year, which is expected to make the trade center mall the third most profitable in the country. And major national retailers, such as Banana Republic, Coach and Godiva have opened stores in the trade center mall to cater to a daily audience of 40,000 employees and thousands of visitors. Many of these retailers indicate that their trade center stores are among their top sales producers in the country.
Overseeing the trade center would be more than enough for most people in Mrs. Nanninga's position. But she also is responsible for approximately 700 active leases at facilities ranging from the trade center to the Newark Legal Center to the Teleport on Staten Island. In addition, she manages the disposition of property no longer used by the Port Authority, including the Brooklyn Grain Terminal and Yonkers Industrial Park. She also handles the acquisition of property for Port Authority projects, including right-of-way for the AirTrain project at John F. Kennedy International Airport and land to expand the Howland Hook Marine Terminal on Staten Island.
Unlike many of her colleagues in the real estate profession, Mrs. Nanninga took an unusual career path to her current position. After graduating from California State University at Hayward in 1970, she was employed for one year as a secretary and for the next three years as a bilingual teacher in the Boston Public Schools.
In July 1976, Mrs. Nanninga joined the Port Authority as a financial analyst, and in 1979, got her first taste of real estate when she was promoted to property representative, responsible for the marketing and leasing of industrial properties. In November 1981, she left the Port Authority for a job as a senior planning analyst with Philip Morris Inc. She returned to the bistate agency in January 1985 and served as Assistant Manager of Financial Analysis, Manager of Capital and Long-Range Planning, and Assistant Director of Management and Budget. In 1993, she returned to the real estate field as Deputy Director of the World Trade Department. In 1996, the Port Authority decided to consolidate all of its real estate units under Mrs. Nanninga.
In addition to improving the trade center's occupancy rate and its retail offerings, Mrs. Nanninga also has positioned the World Trade Center as an integral part of the downtown Manhattan community. She was instrumental in the launch of "Evening Stars," the outdoor summer festival of dance, music and theater, produced by the Lower Manhattan Cultural Council, that provides free entertainment in the trade center's outdoor Austin J. Tobin Plaza. This year, all of the World Trade Center's summer entertainment, including the "Evening Stars" series, attracted 300,000 people.
Mrs. Nanninga lives in Manhattan and Cutchogue, L.I. with her husband, Reno Cappello.
Some more light reading.
Port Authority To Lease World Trade Center To Silverstein Properties, Inc. And Westfield America, Inc.
Date: April 26, 2001
Press Release Number: 68-01
Subcategory: World Trade Center
<<<<<99-Year Net Lease Worth $3.2 Billion; Richest Real Estate Transaction in New York History>>>>>>
The World Trade Center today became the richest real estate prize in New York City history as the Port Authority of New York and New Jersey reached agreement with a major New York City developer and an international shopping center operator on a long-term lease of the famous Twin Towers and other properties at the World Trade Center.
Silverstein Properties, Inc., and Westfield America, Inc. have agreed to a net lease transaction for a term of 99 years, worth an estimated $3.2 billion on a present value basis. The net lease covers four buildings at the World Trade Center, including the Twin Towers and the retail Mall. The lease was approved by the Port Authority's Board of Commissioners at their meeting today.
Governor George E. Pataki said, “When I became Governor, one of my first goals was privatization of this world-famous symbol of the vitality and economic might of the New York region. I am proud to announce that my administration has delivered. This is the largest real estate transaction in New York City history, and one of the largest privatizations ever of a government asset. This agreement allows the private sector to bring its expertise to managing this landmark, and it frees Port Authority resources for improvements in airports, tunnels and bridges and other parts of the region’s transportation network.”
Acting Governor Donald T. DiFrancesco said, "The net lease of the World Trade Center will allow the Port Authority to maintain its revenue stream from the complex, while helping the agency to refocus on the transportation and trade projects in both states that constitute its primary mission. A strong Port Authority will be able to carry out even more projects such as the extension of the Newark Airport monorail to the Northeast Corridor rail line, the purchase of a new fleet of PATH cars, and improvements to the maritime ports and to the bridges and tunnels used by hundreds of thousands of commuters daily."
Port Authority Chairman Lewis M. Eisenberg said, "Construction of the World Trade Center by the Port Authority was one of the greatest construction feats of the last century. And building prime office space in what was then a deteriorating area achieved its goal -- stimulating economic development, and sparking a renaissance in downtown Manhattan, which still continues. The Port Authority and the region both benefit from this transaction. By privatizing the complex at such a favorable time, the agency has provided a stable cash flow from the World Trade Center for the coming century, while reducing exposure to real estate market risk. The long-term lease also ensures that the World Trade Center will continue to meet the public purposes for which it was built, consistent with our bistate statutory mandate."
Port Authority Executive Director Neil D. Levin said, "For the region we serve, privatizing the World Trade Center means a dependable source of revenue to fund regional transportation improvements over the next 99 years. During the last decade, the Port Authority has vastly increased the value of this public asset through effective management and by emphasizing service to tenants. Occupancy, at about 97 percent, is at a historic high. Asking rents for offices and retails shops have doubled in the last five years. And the Mall at the World Trade Center has become one of the country's most successful shopping malls. It was this excellent record of managing the complex that now allows the Port Authority to realize the enhanced value of the complex through this privatization agreement.”
Port Authority Vice Chairman Charles Gargano said, "When the Port Authority built the World Trade Center 30 years ago, it stimulated a new office market in lower Manhattan. The agency has achieved its original goals of economic development. Now it's time for the public sector to step aside and allow the private sector to do what it does best. The Port Authority, meanwhile, will continue to enjoy revenues from the World Trade Center to help fund transportation initiatives throughout the region."
Considered a white elephant in its early years, the World Trade Center, an engineering marvel, became a highly successful office and retail complex in downtown Manhattan, attracting tenants from around the world and becoming an international symbol of New York. It is now the most valuable commercial property in the history of New York.
The buildings included in the net lease agreement are Number One and Two World Trade Center (the Twin Towers), Four and Five World Trade Center (two nine-story office buildings) and approximately 400,000 square feet of retail space. Numbers Three (the WTC Marriott Hotel), Six (the U.S. Customs House) and Seven World Trade Center (a 47-story office building) are already under lease.
The World Trade Center welcomed its first tenant in December 1970. More than 430 companies from 28 countries lease space in the complex. They are engaged in a wide variety of commercial activities, including banking and finance, insurance, transportation, import, export, freight forwarding, customs brokerage, trade associations and representatives of foreign governments. An estimated 40,000 people work in the World Trade Center, and another 140,000 visit the complex daily.
end
Press Release Article
GOVERNOR PATAKI, ACTING GOVERNOR DiFRANCESCO LAUD HISTORIC PORT AUTHORITY AGREEMENT TO PRIVATIZE WORLD TRADE CENTER
Date: Jul 24, 2001
Press Release Number: 101-2001
NOTE: SEE WTC FACTS \"BY THE NUMBERS\" AT THE END OF THIS PRESS RELEASE.
New York Governor George E. Pataki and New Jersey Acting Governor Donald T. DiFrancesco today hailed the Port Authority of New York and New Jersey\'s decision to privatize the management and operation of the World Trade Center, a world-renowned icon that for three decades has been New York City\'s most famous landmark.
Silverstein Properties, Inc., and Westfield America, Inc. will lease the Twin Towers and other portions of the complex in a deal worth approximately $3.2 billion – the city\'s richest real estate deal ever and one of the largest privatization initiatives in history.
“From my first days in office, I have pushed hard to privatize the management and operation of the World Trade Center because I believe that government is at its best when it focuses on its core mission. Today, as we make history, we can say: Mission accomplished,” Governor Pataki said. “By sharpening the agency’s focus on our airports, seaports, bridges and tunnels, the Port Authority can improve services to all its customers and become a stronger economic engine for the entire region, helping the private sector create good jobs and opportunities for our citizens.”
Acting Governor DiFrancesco said, “This lease is a victory for the people of our region who depend on the Port Authority to keep transportation strong and trade moving through the metropolitan area. We can all be proud of the Port Authority\'s role in building the World Trade Center and making it such a success. But now the Port Authority will be able to focus on its primary mission of economic development, and concentrate on such projects as extending the Newark Airport monorail to the Northeast Corridor rail line, purchasing new PATH cars and improving the maritime ports and bridges and tunnels. Now is the right time to privatize and make this region an even stronger center for commerce, transportation and trade.” While the Port Authority’s 99-year net lease with Silverstein Properties, Inc., and Westfield America, Inc. is worth approximately $3.2 billion to the Port Authority on a present-value basis, the complex’s value to the economy of the region is incalculable. As the site of 40,000 jobs and a stopping point for 150,000 daily visitors, the World Trade Center has an economic and emotional impact that is felt far beyond the complex’s 16 acres.
Port Authority Chairman Lewis M. Eisenberg said, “No private developer would have built the World Trade Center when it was proposed nearly four decades ago. It was simply too vast and risky an undertaking, and even the Port Authority with all its resources faced great opposition. But the agency persevered and constructed a first-class complex, which succeeded in revitalizing Manhattan’s downtown real estate market.
“Today marks a new chapter in the World Trade Center’s vibrant life, one in which it gains the benefits of private expertise and capital while continuing the public purposes for which it was built. We fully expect that, with this new lease, the World Trade Center will continue to be the most desirable commercial property in New York.” Port Authority Vice Chairman Charles A. Gargano said, “The World Trade Center and its Twin Towers are among the handful of instantly recognizable structures on the entire planet, like the Pyramids at Giza or the Great Wall of China. And now this property will be notable not only for its appearance, but also for this unique public-private partnership that has been struck between the Port Authority, Silverstein Properties and Westfield America.”
Port Authority Executive Director Neil D. Levin said, “As the Port Authority enters into this historic agreement, it is important to note that the agency will continue to play a significant role in the management of the World Trade Center. For instance, the agency will retain its oversight of the complex’s building, fire, environmental and health codes and the integrity of its physical plant. We will continue to protect this outstanding public asset so that it can continue to flourish.
“Under the Port Authority’s leadership, the World Trade Center reached near-capacity occupancy rates even as asking rents doubled over the last five years. Meanwhile, dozens of new shops thrived in the complex’s transformed retail space – one of the most successful malls in the country. The Port Authority looks forward to sharing in the successes of the Silverstein and Westfield companies as they build upon these accomplishments.”
New York State Research Council on Privatization Chairman Ronald S. Lauder said, “By moving moving the World Trade Center off the state inventory and into the free market, off the State inventory and into the free market,Governor Pataki is once again putting taxpayers first. Across his time in office, Governor Pataki has consistently usedused the power of private enterprise to deliver better services for taxpayers faster and at a lower price. Today\'s success is the latest and the highest profile example of Governor Pataki\'s focusing government on what it should be doing and avoiding areas it has no business meddling in. and avoiding areas it has no business meddling in. And today, with this multi-billion dollar deal done, hard-working New York taxpayers have 3.2 billion reasons to appreciate Governor Pataki\'s leadership.”
Larry Silverstein, Chief Executive Officer of Silverstein Properties, Inc. said, “I am proud to assume the stewardship of the World Trade Center, one of New York’s greatest jewels. We are committed to maintaining the World Trade Center\'s high standards and building on the fine record established by the Port Authority in operating the property as a first-class office and retail complex.” in operating the property as a first-class office and retail complex.\"
Peter S. Lowy, Chief Executive Officer of Westfield America, Inc. said, “Under the Port Authority’s direction, the retail space at the World Trade Center has undergone a renaissance and is now one of the most sought-after retail locations anywhere. Westfield America intends to capitalize on this great opportunity to make the World Trade Center an even more popular destination for employees, residents, shoppers and tourists.\"
Today’s agreement covers One and Two World Center (the Twin Towers), Four and Five World Trade Center (two nine-story office buildings), and approximately 425,000 square feet of retail space. JP Morgan/Chase, Cushman & Wakefield and Milstein Realty Advisors acted as advisors to the Port Authority.
Three World Trade Center (the WTC Marriott Hotel), Six World Trade Center (the U.S. Customshouse) and Seven World Trade Center (a 47-story office building) are already under long-term leases.
The World Trade Center welcomed its first tenant in December 1970. More than 430 companies from 28 countries lease space in the complex. They are engaged in a wide variety of commercial activities, including banking and finance, insurance, transportation, import, export, freight forwarding, customs brokerage, trade associations and representatives of foreign governments.
end
THE WORLD TRADE CENTER: BY THE NUMBERS
0: Interior support columns on the 50,000-square-foot floors of the Twin Towers.
5: Acres that make up a public plaza named for Austin J. Tobin, the Port Authority’s Executive Director from 1942-72.
7: Buildings in the World Trade Center. In addition to One and Two World Trade Center (the Twin Towers), the complex includes Three World Trade Center (the World Trade Center Marriott Hotel); Four and Five World Trade Center (the Southeast and Northeast Plaza Buildings); Six World Trade Center (the U.S. Customs House); and Seven World Trade Center (a 47-story office building).
16: Acres of land occupied by the complex.
22: Width, in inches, of the windows in the Twin Towers. In an interview with The New York Times, architect Minoru Yamasaki said he settled on this dimension because, “people are not afraid of height when the width of the window is not much more than their shoulders.”
23.5: Acres of new land created by the material excavated in lower Manhattan to make way for the World Trade Center. The land, which eventually became known as Battery Park City, was deeded to New York City by the Port Authority.
27: Top speed, in feet per second, of an express elevator at the World Trade Center.
55: People able to ride in a single express elevator car.
99: Length, in years, of the net lease agreement between The Port Authority of NY & NJ and Silverstein Properties, Inc. and Westfield America, Inc.
110: Stories in each of the Twin Towers.
152: Trenches, each 70 feet deep, that were dug and then supported by reinforced steel walls so that the 3,100-foot perimeter of the World Trade Center could be excavated.
360: Height, in feet, of the television mast atop One World Trade Center.
1,377: Height, in feet, of the World Trade Center Observatory promenade, making it the world’s highest outdoor viewing platform.
1,730: Height, in feet, from street level to the top of the television mast.
5,000: Workers on the World Trade Center site during peak construction periods. 10048: The World Trade Center’s zip code. The building complex is so big it has its own code, and it takes 10 U.S. Postal Service carriers to deliver mail to the complex every weekday.
40,000: Approximate number of people currently employed at World Trade Center.
43,600: Windows in the Twin Towers.
60,000: Tons of cooling capacity generated by the World Trade Center’s refrigeration plant – the largest such system in the world.
150,000: Approximate number of daily visitors at World Trade Center.
425,000: Cubic yards of concrete used to build the World Trade Center, or enough concrete to construct a 5-foot-wide sidewalk from New York City to Washington D.C.
427,000: Square feet of retail space within the World Trade Center.
2,500,000: Square feet of sub-grade space, including a parking garage, storage areas and loading docks.
12,000,000: Square feet of office space in the World Trade Center.
3,200,000,000: Estimated net present value, in dollars, of the net lease agreement.
