Press Release
New York Fed Acquires Maiden Lane Building
February 28, 2012
The Federal Reserve Bank of New York (New York Fed) today announced that it has acquired the building at 33 Maiden Lane for $207.5 million from Merit US Real Estate Fund III, L.P. and established a new, wholly owned limited liability company called Maiden & Nassau LLC to serve as owner of the building. The acquisition provides a cost-effective, long-term alternative to the current practice of leasing space in this and other buildings and allows for greater control over maintenance, operation and security of the building.

The decision to purchase the building was based on a comprehensive financial analysis that considered the Bank’s long-term space needs and the potential fluctuations in the New York City downtown real estate market. The purchase decision was approved by the New York Fed’s board of directors as well as by the Board of Governors of the Federal Reserve System.

The New York Fed has been the primary occupant of the building since 1998 accounting for nearly 75 percent of the space. Approximately 1,100 Bank staff work in the building.

William C. Dudley, president of the New York Fed, said, “The purchase is a cost-effective way to meet our business needs and will enable us to more easily ensure appropriate security for our operations. We are also pleased to contribute, through our investment, to the ongoing revitalization of lower Manhattan.”

About the Federal Reserve Bank of New York
The Federal Reserve Bank of New York is one of 12 regional Reserve Banks, which together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Federal Reserve is an independent governmental entity created by Congress in 1913 to serve as the central bank of the United States. The New York Fed oversees the Second Federal Reserve District, which includes New York State, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico and the U.S. Virgin Islands.

Contact:
Andrea Priest
(212) 720-6139
(646) 720-6139
andrea.priest@ny.frb.org