For sale


Bronx GPO sold, no details yet

August 29, 2014

The Bronx General Post Office has been sold.  There’s no word yet on who the buyer is or what the plans for the building are, but the post office was definitely sold two weeks ago.  On the USPS-CBRE website, the listing says simply, "Sold."

The Postal Service has not made an official announcement about the sale, and it is apparently not ready to release any information.  When an attorney working on behalf of the Bronx GPO asked for basic details, the Postal Service’s lawyer suggested filing a request under the Freedom of Information Act.  That usually takes weeks, even months.

The fate of the Bronx GPO is obviously a matter of public concern in the Bronx, and it’s not clear why the Postal Service is so reluctant to share information about who bought the building, how much it sold for, what the plans are, where the postal retail operation is relocating, and so on.  Hopefully, the Postal Service will be more forthcoming about providing answers to these questions soon.

The listing for the Bronx GPO on the CBRE-USPS Properties for Sale website includes several documents related to the property.  One of them is a lease agreement saying that the Postal Service “will require a temporary lease-back period of up to 12 months while its replacement facility is prepared.  During this temporary lease-back period the USPS will pay rent of $1.00.”  Presumably, then, the Postal Service has been looking for a new space in the neighborhood, or it’s going to start looking for one now that the building has been sold. 

As for the Bronx GPO itself, the Postal Service has not seemed very interested in sharing information about prospective buyers or consulting with the community about what its needs and preferences might be, but perhaps there have been behind-the-scene discussions with elected officials in the Bronx.

The Postal Service has also not been very influenced by criticisms of how it has been handling the disposal of its historic properties.  In April, the Advisory Council on Historic Preservation recommended that the Postal Service refrain from selling historic post offices until it improved its program and procedures. 

Mr. Tom Samra, Vice President of Facilities at the Postal Service, responded with a detailed letter dismissing the ACHP report as “very one-sided and distorted.”  Now, despite the ACHP’s recommendations, Mr. Samra has approved the sale of the Bronx GPO.

The Postal Service’s decision to close and relocate the Bronx GPO was controversial from the moment the plan was announced back in January 2013.  Last year Bronx activist Julio Pabon and yours truly, Steve Hutkins, challenged the decision in an appeal to the Postal Regulatory Commission, but the PRC dismissed the case as a “relocation” decision and outside its jurisdiction.  That ruling is currently being contested in the D.C. Circuit Court by attorney Elaine Mittleman on behalf of Pabon and Hutkins.  Even with the Bronx GPO sold, this appeal may go forward in order to address several important issues raised by the case.

Many organizations and elected officials have come out in opposition to the sale.  Letters were submitted by the Bronx River Art Center, the East Bronx History Forum, the National Post Office Collaborate, the National Trust for Historic Preservation, and the Office of the Bronx Borough President.  In addition, nine New York City Council members, ten New York State Assembly members, six New York State Senate members, and three members of the U.S. House of Representatives all signed a letter opposing the sale.  

In April of this year, a coalition of elected officials that included New York Mayor Bill De Blasio and Senators Kristen Gillibrand and Charles Schumer urged that the sale be put on hold.  Congressman José Serrano also introduced legislation halting the sales until the Postal Service implements the ACHP recommendations, just as he had worked to get the Postal Service to stop the sales while the USPS OIG wrote its own report on the matter.

In spite of all the public opposition, legislative efforts, the OIG report, and the ACHP recommendations, the Postal Service went ahead and sold the Bronx General Post Office.  We’ll have to wait a bit longer to learn what’s going to happen to the building and to the priceless Ben Shahn murals on its walls.

(Image credit: Lobby of Bronx GPO)


For more on the Bronx GPO:

“Sale of historic Bronx Post Office moves forward; bids due Jan. 15 (Save the Post Office, Jan. 12, 2014)
“Postal Service Considers Sale of Bronx General Post Office” (New York Times, Feb. 1, 2013)
 “A Bronx Cheer for the Postal Service: The Fire Sale of Historic Post Offices Continues” (Save the Post Office, Feb. 3, 2013)
“Sale of Bronx GPO draws anger from pols/union” (Bronx Times, Feb. 7, 2013)
“Bronxites React to Post Office Sale” (The Bronx Journal, March 1, 2013)
“Post Office Buildings With Character, and Maybe a Sale Price” (New York Times, March 7, 2013)
“As sale of Bronx General Post Office seems inevitable, there’s a push to safeguard its 13 iconic murals” (Daily News, March 31, 2013)
“Bronx officials rally to save General Post Office” (Bronx Times, April 9, 2013)
“Binding the nation together: Berkeley and the Bronx join forces to save the post office” (Save the Post Office, April 13, 2013)
“Democracy rests finally upon us: Saving the Bronx General Post Office” (Save the Post Office, Sept. 19, 2013)
 “USPS to Bronx: Drop dead — the GPO must go” (Save the Post Office, June 13, 2012)
“Hurdles in sale of Bx GPO” (Bronx Times, July 26, 2013)
"High on Landmark Panel's List: A Post Office Lobby" (New York Times, Aug. 21, 2013)
“Shahn Murals in Bronx Post Office to be Saved” (New York Landmarks Conservancy, Dec. 2013)
“City Agency Preserves Artwork Inside Bronx Post Office” (TWC News, Dec. 18, 2013)

Dismantling the Public Realm: Post Offices for Sale

November 5, 2011

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In July the Postal Service outsourced its real estate and property management business to CB Richard Ellis, the world’s largest commercial real estate company.   Today the USPS-CBRE website is up and running, showing off some 90 post office buildings as well as 36 land parcels, all for sale.   The Postal Service must be in a big hurry to dismantle itself — the website has a page on "About USPS" and all it says is "Under Construction."  Maybe it should say, "Under Deconstruction."

When the story was first reported back in July, the Wall Street Journal said that CBRE had been hired “to advise the agency on the 300 million square feet of property that it owns or leases.”  Tom Samra, vice president for facilities at the postal service, said, “We'll be putting buildings on the market and terminating leases, where possible." Over the next six months, Mr. Samra said, the agency and CBRE are looking to craft a plan on how to curtail the portfolio in line with the lower mail volumes seen by the agency.

That plan is now being implemented, and it turns out that CBRE will be doing a little bit more than “advising” the Postal Service.  The company is now the “exclusive” real estate agent and provider for the U.S. Postal Service.  It is taking over the negotiation of leases, and it is working with broker Caldwell Banker to market and sell post office buildings and lands.  

As reported in a USPS News Link (thanks to Postal News for catching this), Samra says that the USPS real estate holdings are a valuable yet underutilized asset, and they cost the Postal Service a lot of money to maintain.  The Postal Service calls them “surplus buildings,” but they are “underutilized” and “surplus” because the Postal Service made them that way.  It has moved carriers out of downtown post offices to annexes on the outskirts and in the suburbs, like in Camas, Washington, where a New Deal post office is now for sale, with postal services moved to the annex.  It has shifted from owning to leasing spaces, like in Palm Beach Florida, where it sold off the New Deal post office and moved the post office to a rented space in a strip mall.  It has opened up “alternative retail access points” in Wal-Marts and Staples so that business is siphoned off from the brick-and-mortar post office, and now it says that customers “prefer” it that way.

The Postal Service didn’t hire the biggest real estate company in the world because it wants to sell off a mere 126 properties.  The Postal Service owns over 8,000 properties, as well as leasing about 27,000.  The new CBRE website is just a preview of coming attractions.  The Postal Service wants to sell off the entire network, or at least a huge portion of it.  The model is Europeans countries like Sweden and Germany, where nearly all of the post offices were closed and replaced by postal counters in private stores and businesses. 

Among the 90 post offices for sale on the new website are ten historic buildings (seen in the slideshow), most of them on the National Register of Historic Places.  They are part of the nation’s architectural treasure, and they are now up for grabs, waiting to be sold to the highest bidder.  Over the coming years, we’re going to watch thousands of post offices sold, and many of them will be historic landmark buildings that are the pride of their communities.  The American people own 8,000 post office buildings, over 2,000 of them built during the New Deal and before.  How many of them must we watch get turned into restaurants and clothing stores and real estate offices before people say, Enough?  

Post offices are a fundamental part of the public realm, along with libraries, public schools, state colleges, national parks, and the public transportation system.  This public infrastructure was built and paid for by the American people, and that's who owns it and that's who it serves.  Now the public realm is under assault  by the corporate elite, which wants to see everything transferred over to the private realm, where they can make a profit off it.  

But it shouldn't be up to a handful of executives in L'Enfant Plaza, the USPS Board of Governors, and a few members of Congress to decide what happens to the Postal Service.  The post offices don't belong to them.  Those are our post offices.  They belong to the 99%.

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Also: Sarah Ryan's "Understanding Postal Privatization: Corporations, Unions, and the "Public Interest"

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