The city’s top real estate official appears in a promotional video for a Bronx warehouse his agency is actively trying to buy, raising new questions about city contracts amid multiple investigations. .
Jesse Hamilton, the city’s commercial space purchasing and leasing agent, was already under fire over his dealings with political donors to Mayor Eric Adams even before a video promoting Hunts Point’s Bronx distribution center was released on Tuesday. He was under intense surveillance. Employees of JLL, the real estate firm that secured construction funding and is currently marketing the Last Mile Warehouse, have contributed at least $15,350 to Adams’ two mayoral races, according to campaign finance records.
The video, aired during Tuesday’s City Council oversight hearing, shows Hamilton wearing a hard hat and praising the new Bronx distribution center as “a phenomenal 1.3 million square foot place that will house many of our city’s agencies.” It’s reflected.
Council members said Hamilton, the deputy director of the Citywide Office of Administrative Services, was undermining the city’s position in negotiations and questioned who the move was intended to benefit.
Brooklyn City Councilman Lincoln Ressler, who chaired a public hearing focused on the city’s commercial transactions, said, “In all my years in government, I can’t recall a time when DCAS promoted the use of private property.” No,” he said. “It is not the role of DCAS to promote the best interests of private property owners, and I think this video shows that.”
“I think it’s strange and frankly it smells funny,” he added.
DCAS Director Luis Molina confirmed at the beginning of the hearing that the city is in negotiations to purchase the facility. He told city councilors he was unaware of the video and would “investigate further.”
A JLL spokesperson did not respond to multiple requests for comment.
Records show the property is owned by Turnbridge Equities and Dune Real Estate Partners, which formed a limited liability company to lobby Hamilton last year. They didn’t respond to calls or emails.
The property, as well as the Bronx warehouse, has been owned since investigators from the Manhattan District Attorney’s Office seized Mr. Hamilton’s cell phone after he traveled to Japan with a commercial broker hired by the city to sign rental and purchase agreements. , the latest property to raise questions over Mr Hamilton’s dealings in recent weeks. Earlier this year, Politico reported that Mr. Hamilton succeeded in scuttling the city’s Office on Aging office contract after a competitive bidding process to lease space in another building from a billionaire Adams donor.
DCAS did not immediately respond to requests for comment on the video or the status of the negotiations. Hamilton did not return calls.
About an hour before the video was aired on the council floor, Molina told lawmakers the city was considering a “possible acquisition” of the Bronx distribution center. He added that negotiations were only “in the early stages of consideration.”
But city officials appearing in the video suggested negotiations could go further. Hamilton was flanked by Eric Abad, assistant director of the Office of Management and Budget, and George Donahue, assistant director of DCAS’ leasing division.
“This is truly the future of cities and where we need to be,” Abad said in the video.
“This is a great building for New York City,” Donahue added.
Mr Hamilton recognized former DCAS Director Dawn Pinnock in the video, suggesting it was filmed before Mr Molina was appointed to the role in June.
Molina told City Council members that he met with brokers from Cushman & Wakefield on Oct. 8 to discuss a possible acquisition. The meeting also included Diana Boutros, a broker hired by the city to find commercial land and close deals, he said. . Mr. Boutros accompanied Mr. Hamilton and Adams’ top adviser, Ingrid Lewis Martin, on a trip to Japan that culminated in a clash with investigators at JFK Airport last month.
Ressler noted that the acquisition of the Bronx distribution center could cost Boutros $13.4 million in fees.
“We’re talking about a very large amount of money,” the councilman said. “These are very lucrative deals.”
Neither Mr. Boutros nor spokespeople for Mr. Cushman and Mr. Wakefield responded to requests for comment.
The DCAS contract currently faces review by multiple parties, including First Deputy Mayor Maria Torres Springer.
Hamilton, a former state senator and aide to the mayor, has played a key role in securing office space for city officials from private landlords affected by the decline in commercial rentals due to the pandemic, earning tens of millions of dollars. It holds the authority to enter into substantial contracts.
Despite the investigation and continued review, Molina told councilors he has not limited Hamilton’s authority to lead with lease or purchase agreements.
“There are many mitigation options, but no one has complete autonomy or authority to bind New York City, taxpayers, or real estate transactions,” Molina said.
