NEW YORK | 343 Madison Avenue | 844 FT | 49 FLOORS

[RobertWalpole]

Therealdeal.com reported on 28 Feb. 2012 that the MTA is submitting RFPs to developers for its Madison Avenue headquarters. It's sad because it's a nice, per-war tower. That being said, a lot of air rights exist here, and something over 300m could rise here.

[babybackribs2314]

By it's you mean the MTA! & this is exciting news.

I wish more companies would do what Hearst did with its HQ; the facade is really all that matters on these buildings as most of the interiors are dingy etc.

People worried about the visual impact of 432 Park (cross fingers it gets to 1,700 as you mentioned was possible) are delusional... all of Midtown is going to be sprouting 1,000' towers by the end of the decade. NYC is going to have the first skyline in the world that is truly Coruscant-esque.

[Crawford]

There are a number of major development sites along Madison near Grand Central that could yield 1000 ft.+ towers.

I think this part of town will look very different 10 years from now.

[RobertWalpole]

That's true. There are A LOT of unused air rights from GCT.

[babybackribs2314]

There are a number of major development sites along Madison near Grand Central that could yield 1000 ft.+ towers.

I think this part of town will look very different 10 years from now.

Potentially dramatically, especially as the city considers upzoning the entire neighborhood (already one of the densest--if not the densest office cluster--in the world).

The main takeaway from all this is that opposition to height in NYC is silly, and also that the ESB's days as a focal point for Midtown are quite numbered. With the developments to the West (Hudson Yards T2, Brookfield's T2, 15 Penn--all as tall/taller than the ESB), the developments to the North (432 Park and likely 225 W57th) and the emerging proposals along the East Side, it is going to be a giant among equals rather than a solitary behemoth.

If only we could get the Met Life North Tower finally completed. :(

[aquablue]

The news today in the WSJ suggests the office market is going to flooded with space soon and the financial services industry is getting smaller. Don't expect many new office towers to go up any time soon.:(

[RobertWalpole]

These towers aren't being built on spec., and the financial services industry always expands and contracts. I guarantee that banks alone (excluding Credit Suisse) will be seeking millions of square feet in a few years. As the financial and commercial capital of the world, NY has a unique demand for space. In this regard, it's been well-documented that companies currently seek between 5 and 6m sf of space. No other city in the US or Europe can make a similar claim.

Since you're not from NY, it's understandable that you don't understand it's unparalleled position.

[aquablue]

These towers aren't being built on spec., and the financial services industry always expands and contracts. I guarantee that banks alone (excluding Credit Suisse) will be seeking millions of square feet in a few years. As the financial capital of the world, NY has a unique demand for space.

Since you're not from NY, it's understandable that you don't understand it's unparalleled position.

Being from NY has nothing to do with it. Jesus, just drop it man.:rolleyes: You just need to stop talking like that.

[RobertWalpole]

I disagree. By the way, why won't you concede where you're from?

[yankeesfan1000]

The news today in the WSJ suggests the office market is going to flooded with space soon and the financial services industry is getting smaller. Don't expect many new office towers to go up any time soon.:(

No. 51 Astor is being looked at by tech companies. 1 WTC up to this point is largely occupied by a publishing and a law firm. Hudson Yards South's anchor tenant makes purses, among other stuff I've been told. 250 W 55th is almost entirely leased, and it's all law firms. Plus you have L'Oreal looking at enough space to anchor, and get 3 WTC built, 500K for a make up company! (I know they won't move there but just an indication of how much space that is), Viacom and News Corp both none financial firms looking for huge amounts of space, 1M SF each.

Financial service companies have traditionally driven new office construction in the past, but as has been posted in the Hudson Yards thread, all sorts of companies, from all different types of industries are looking for new space because almost 90% of commercial square feet in Manhattan predates 1970, source (http://therealdeal.com/blog/2010/11/01/the-aging-apple-1/). That is an incredible statistic.

I met with a woman who works at Studley this morning, and she has worked on the Time Warner account, a media company that is reevaluating it's more than 4 MILLION SF NY portfolio, that's almost one entire of the original twin towers, and they're also managing Jones Day which is another law firm looking for 400K worth of square feet, and she hinted at some other names and locations they're looking at specifically but nothing that wouldn't surprise someone on this site. Plus Milbank is getting booted from the JP building downtown and needs 250K sf.

Plus, your assertion that financial firms won't move isn't well founded either. Credit Suisse is actively looking at new space with CBRE, and Citi is looking around too. There is a lot of natural pent up demand for new space, the vacancy rate is falling, and rents are rising. These companies are smart, they know that at places like Hudson Yards, MW, and the WTC they can get huge blocks of office space (which it's important to understand is very rare in Manhattan) at discounted prices because of tax credits, among other things so they actually save money in the future by signing leases now and get into one of those new buildings instead of waiting until their lease expires in 2015 or 2018 when the economy will probably be better, and rents will be higher.

That was a bit of a rant, I had a long day so I apologize, and don't take it personally but what you said is just false.

[babybackribs2314]

No. 51 Astor is being looked at by tech companies. 1 WTC up to this point is largely occupied by a publishing and a law firm. Hudson Yards South's anchor tenant makes purses, among other stuff I've been told. 250 W 55th is almost entirely leased, and it's all law firms. Plus you have L'Oreal looking at enough space to anchor, and get 3 WTC built, 500K for a make up company! (I know they won't move there but just an indication of how much space that is), Viacom and News Corp both none financial firms looking for huge amounts of space, 1M SF each.

Financial service companies have traditionally driven new office construction in the past, but as has been posted in the Hudson Yards thread, all sorts of companies, from all different types of industries are looking for new space because 91% of commercial square feet in Manhattan predates 1970. That is an incredible statistic.

I met with a woman who works at Studley this morning, and she has worked on the Time Warner account, a media company that is reevaluating it's more than 4 MILLION SF NY portfolio, that's a half million sf more than TWO ESBs, and they're also managing Jones Day which is another law firm looking for 400K worth of square feet, and she hinted at some other names and locations they're looking at specifically but nothing that wouldn't surprise someone on this site. Plus Milbank is getting booted from the JP building downtown and needs 250K sf.

Plus, your assertion that financial firms won't move isn't well founded either. Credit Suisse is actively looking at new space with CBRE, and Citi is looking around too. There is a lot of natural pent up demand for new space, the vacancy rate is falling, and rents are rising. These companies are smart, they know that at places like Hudson Yards, MW, and the WTC they can get huge blocks of office space (which it's important to understand is very rare in Manhattan) at discounted prices because of tax credits, among other things so they actually save money in the future by signing leases now and get into one of those new buildings instead of waiting until their lease expires in 2015 or 2018 when the economy will probably be better, and rents will be higher.

That was a bit of a rant, I had a long day so I apologize, and don't take it personally but what you said is just false.

He posted the same exact thing in like 5 different threads... if I had to guess, I would say he's from Chicago as that is the #1 region that likes to 'intrude' on NYC threads (but I guess that makes sense when nothing is going on in their city!).

[aquablue]

No. 51 Astor is being looked at by tech companies. 1 WTC up to this point is largely occupied by a publishing and a law firm. Hudson Yards South's anchor tenant makes purses, among other stuff I've been told. 250 W 55th is almost entirely leased, and it's all law firms. Plus you have L'Oreal looking at enough space to anchor, and get 3 WTC built, 500K for a make up company! (I know they won't move there but just an indication of how much space that is), Viacom and News Corp both none financial firms looking for huge amounts of space, 1M SF each.

Financial service companies have traditionally driven new office construction in the past, but as has been posted in the Hudson Yards thread, all sorts of companies, from all different types of industries are looking for new space because almost 90% of commercial square feet in Manhattan predates 1970, source (http://therealdeal.com/blog/2010/11/01/the-aging-apple-1/). That is an incredible statistic.

I met with a woman who works at Studley this morning, and she has worked on the Time Warner account, a media company that is reevaluating it's more than 4 MILLION SF NY portfolio, that's almost one entire of the original twin towers, and they're also managing Jones Day which is another law firm looking for 400K worth of square feet, and she hinted at some other names and locations they're looking at specifically but nothing that wouldn't surprise someone on this site. Plus Milbank is getting booted from the JP building downtown and needs 250K sf.

Plus, your assertion that financial firms won't move isn't well founded either. Credit Suisse is actively looking at new space with CBRE, and Citi is looking around too. There is a lot of natural pent up demand for new space, the vacancy rate is falling, and rents are rising. These companies are smart, they know that at places like Hudson Yards, MW, and the WTC they can get huge blocks of office space (which it's important to understand is very rare in Manhattan) at discounted prices because of tax credits, among other things so they actually save money in the future by signing leases now and get into one of those new buildings instead of waiting until their lease expires in 2015 or 2018 when the economy will probably be better, and rents will be higher.

That was a bit of a rant, I had a long day so I apologize, and don't take it personally but what you said is just false.

Hey man, i am repeating what the WSJ wrote. So, take your rants elsewhere. This wasn't something I came up with.:rolleyes: Or, go and take it out on the editorial board of the WSJ!!!

[aquablue]

He posted the same exact thing in like 5 different threads... if I had to guess, I would say he's from Chicago as that is the #1 region that likes to 'intrude' on NYC threads (but I guess that makes sense when nothing is going on in their city!).

I'm pro NY, and not from Chicago. I posted that in many threads because it is very worrying news for everyone who wants NY to build more tall buildings:rolleyes: I don't have insider information to contradict what the press are saying, so if its wrong, you can't blame me for reading a well known publication like the WSJ!!!!!!!!!!!!!!!!

[jd3189]

Potentially dramatically, especially as the city considers upzoning the entire neighborhood (already one of the densest--if not the densest office cluster--in the world).

The main takeaway from all this is that opposition to height in NYC is silly, and also that the ESB's days as a focal point for Midtown are quite numbered. With the developments to the West (Hudson Yards T2, Brookfield's T2, 15 Penn--all as tall/taller than the ESB), the developments to the North (432 Park and likely 225 W57th) and the emerging proposals along the East Side, it is going to be a giant among equals rather than a solitary behemoth.

If only we could get the Met Life North Tower finally completed. :(

Agreed. It would be the new ESB for 21st century Midtown. Can't wait for supertalls to be the new standard in New York. We might have one of the world's tallest skylines one day, as well as the largest.

[Dac150]

It's sad because it's a nice, per-war tower. That being said, a lot of air rights exist here, and something over 300m could rise here.

I expect this trend to continue in order to keep Midtown up to speed in the modern office market. As great as the West-Side expansion is, it does not compensate for modern office space in the heart of Midtown. As previously pointed out there are many unused air-rights in the Grand Central area that can be leveraged in order to fill the demand.

[sbarn]

Hey man, i am repeating what the WSJ wrote. So, take your rants elsewhere. This wasn't something I came up with.:rolleyes: Or, go and take it out on the editorial board of the WSJ!!!

No, actually it was a very informative post. Why the WSJ citing a 13 story building in the village as an example of some sort of office property bubble is beyond me. :shrug:

[reencharles]

I hope it's an amazing building, because the building that is there now is very good.
Whether it will be replaced, it must be for something much better.

[yankeesfan1000]

No, actually it was a very informative post. Why the WSJ citing a 13 story building in the village as an example of some sort of office property bubble is beyond me. :shrug:

Thanks, sbarn.

In the fall of last year Stephen Ross CEO of Related, said he was speaking with 8 companies who all were looking at at least 1M sf of space, plus the companies on the list below (thanks to RW for posting it in HY thread), and add to that list the Milbanks and other firms who haven't been as public with their hunt for new space, and barring an economic catastrophe, there is plenty of demand to go around.

Regurgitating what someone else wrote without putting any thought into the validity of the original point isn't something I'd recommend. But regardless of how well anyone on this board thinks we may understand, in this case New York's commercial real estate market, I guarantee you the cities developers, Related, Brookfield, Silverstein, Vornado, etc, all know it much better than anyone here. So the fact that these firms are still bullish on commercial real estate in the city, like Brookfield building the platform for MW despite not having a single tenant, Related not far behind building a platform for the bigger north tower, and the fact that 51 Astor is being built with no tenants, I think is a much more accurate indicator than a pretty narrowly focused article written in WSJ which conveniently ignores a lot of relevant information. But I digress.

http://therealdeal.com/wp-content/uploads/2012/02/Comm_market_Report_top_10_tenants.jpg
Source (http://therealdeal.com/issues_articles/big-fish-scour-market-looking-for-office-space/).

[Crawford]

The news today in the WSJ suggests the office market is going to flooded with space soon and the financial services industry is getting smaller.

I didn't read the article, but if what you're posting is true, the article is stupid.

There are roughly 500 million square feet of Manhattan office space, and Manhattan has, by far, the lowest vacancy rate in the U.S.

The only way that one could "flood" Manhattan with office space is to build minimum 100 million square feet of space or something.

And I guarantee that nothing close to 100 million square feet is u/c. Probably little more than 10-15 million square feet.

Financial services, BTW, are doing just fine. Big banks have issues, but they're still highly profitable, and that's just one portion of the securities industry. Smaller outfits are doing very well by filling in the gap left by the retrenching bigger firms.

[Steely Dan]

if I had to guess, I would say he's from Chicago as that is the #1 region that likes to 'intrude' on NYC threads (but I guess that makes sense when nothing is going on in their city!).

aquablue has said that he's not from chicago and his IP address routes to washington D.C.

if you continue to stir up more chicago vs. NYC nonsense, you WILL be suspended. this bullshit is getting tiresome; grow up.

now back to the topic on hand.

[aquablue]

del

[Steely Dan]

^ my post was directed at babybackribs, not you.

that's why i quoted him in my post.

[aquablue]

^ my post was directed at babybackribs, not you.

that's why i quoted him in my post.

LOL. Sorry, what an idiot I am!

[sbarn]

This kinda makes me sad... THIS (http://maps.google.com/maps?q=347+Madison+Avenue,+New+York,+NY&hl=en&ll=40.754728,-73.977867&spn=0.004893,0.011362&sll=40.73347,-73.969231&sspn=0.078306,0.181789&oq=347+Madison&hq=347+Madison+Avenue,+New+York,+NY&radius=15000&t=h&z=17&layer=c&cbll=40.754728,-73.977867&panoid=Ya61OsiDWjSZz30jUhcNWQ&cbp=12,175.98,,0,-32.89) is a beautiful pre-war building.

[RobertWalpole]

It is sad. Nevertheless, its fate is sealed.

As far as the height goes, this tower should be at least 300m tall. This is a very narrow site. Consider that Madison in the low 40s is bisected by Vanderbilt, and therefore, the sites are very narrow. Moreover, two old office buildings sit behind the MTA's HQ on the Vanderbilt side. This very small parcel likely will have a small boutique office component (e.g., 250-300k sf) that will be geared to hedge funds, PE/VC firms, etc. There also likely will be a five-star hotel and very expensive condos.

Can someone post the Google Maps aerial view of the site?

[scalziand]

It's a prime, albeit small site less than a block from Grand Central.

http://img848.imageshack.us/img848/1201/341madisonavenuenewyork.png

I wouldn't be surprised if the Yale Club gets wrapped up in this somehow too.

[THE BIG APPLE]

Well looks like the view from the Top of the Rock looking SE (and East in general) will change in a few miniscule years.

The Yale Club can't get demolished, cause it's landmarked. BUT they could use air rights if not already used.

[Crawford]

Yeah, I would imagine the Yale Club will sell their air rights.

[RobertWalpole]

There are millions of sf of air rights available from GCT. However, this foot print is so small that even a 1m sf tower would exceed 300m. With small site, up is the only way to go!

[NYguy]

Keep in mind that the City is studying an "upzoning" of the area...
http://forum.skyscraperpage.com/showthread.php?t=197082

[THE BIG APPLE]

Now only of some of those 'millions' of sq ft from GCT went to the site we know today as 383 Madison Ave, back in 1989. With a site this small 1msf can be at least 700-800 ft, since it is office, and the usual 1msf office buildings are 500 ft tall. This building would benefit with some residential components.

[Arawooho]

Now only of some of those 'millions' of sq ft from GCT went to the site we know today as 383 Madison Ave, back in 1989. With a site this small 1msf can be at least 700-800 ft, since it is office, and the usual 1msf office buildings are 500 ft tall. This building would benefit with some residential components.

That seems reasonable enough.

[RobertWalpole]

Now only of some of those 'millions' of sq ft from GCT went to the site we know today as 383 Madison Ave, back in 1989. With a site this small 1msf can be at least 700-800 ft, since it is office, and the usual 1msf office buildings are 500 ft tall. This building would benefit with some residential components.

1m sf would be taller than that. This is a very small site.

[THE BIG APPLE]

^ Yeah I know Rob, that's why at a max I think It'll be atleast 1,100 ft. A minimum of 700-800 ft, for such a small footprint.

[RobertWalpole]

I agree.

[reencharles]

Keep in mind that the City is studying an "upzoning" of the area...
http://forum.skyscraperpage.com/showthread.php?t=197082

This was the first thing I thought when I read this topic. Apparently the rezoning is in progress. :haha:

[RobertWalpole]

http://ny.curbed.com/archives/2012/04/16/bloomberg_pushing_for_rezoning_near_grand_central_terminal.php

Fun With Urban Planning
Bloomberg Pushing for Rezoning Near Grand Central Terminal
Monday, April 16, 2012, by Sara Polsky
Share on email0As Mayor Bloomberg's third term draws to a close, the administration is pushing for a rezoning of the Grand Central neighborhood while it still has the chance. The rezoning would encompass the area between Fifth and Third avenues and East 39th and East 59th streets. It "would be a linchpin of legacy," one unnamed business official tells the Daily News, and it would also have significant implications for Grand Central-area development. Such as?

[B]If the rezoning went through as Bloomberg imagines, it would allow area developers to build up to the height of the Chrysler Building, which one city zoning expert says would make buildings around Grand Central an average of 20 percent to 30 percent larger. A city planning spokesperson says only that the administration is considering the plan now and that it will take a few months to finalize. In the meantime, fantasy renderings of a taller Midtown welcomed to the Curbed inbox.

[NYguy]

http://therealdeal.com/blog/2013/06/25/mta-seeks-developer-to-demolish-rebuild-madison-avenue-hq/

MTA seeks developer to demolish, rebuild Madison Avenue HQ
Site could support development of up to 600,000 square feet


http://s12.therealdeal.com/trd/up/2013/06/prendergast-mta.jpg


June 25, 2013
By Katherine Clarke



The Metropolitan Transportation Authority has put out a request for proposals from developers for a 99-year leasehold interest in a parcel of three properties at 341-347 Madison Avenue, one of which currently serves as the city agency’s headquarters.

Under the terms of the net lease, a developer would demolish the existing structures at the site and redevelop the property within 12 months following the demolition, according to the RFP on the MTA’s website. Commercial brokerage Cushman & Wakefield is marketing the opportunity as the MTA’s exclusive agent, according to the document.

The RFP comes more than two years after the MTA first hinted that it might look to sell or lease the site in the face of financial pressures. A sale of the site, which could be developed into a sizable modern skyscraper, could net the agency more than $150 million, as previously reported.

The RFP did not disclose what price it would be asking for the leasehold.

The full block-front site, between East 44th and East 45th streets, has 200 feet of frontage on Madison Avenue, and its zoning permits a variety of uses. The property will be home to the headquarters of the MTA through 2014 but will likely be delivered to the prospective lessee vacant aside from the retail components, which are home to several tenants operating under terminable leases.

Under current zoning restrictions, a developer could build up to 376,575 square feet on the site on an as-of-right basis. If the developer were to make improvements to the subway station network (likely to the forthcoming Long Island Rail Road concourse connection) and acquire transferable development rights from a third party, he or she could increase the as-of-right square footage to 542,268 square feet, the documents say.

In addition, the site falls within the area of Mayor Michael Bloomberg’s proposed rezoning of Midtown East, which, if it passes, would allow the developer to create a building with up to 602,520 square feet without a special permit.

The RFP calls the site “one of the best unencumbered development sites to come onto the New York City market in many years.”

Under the terms of the agreement with the MTA, the developer would pay monthly fixed-base rent payments, subject to scheduled increases of at least 10 percent every five years and base rent adjustments every 30 years.

A spokesperson for Cushman said the firm could not comment further to the information contained in the RFP. The first of round proposals is due August 14.

[antinimby]

I hate the MTA.

Seriously, why replace this great looking Pre-war building with more than likely another glass box, which we have way too much of already and which is pretty much what is being built everywhere nowadays?

Just sell the damn air rights. Stupid MTA. Stupid city.

[NYguy]

why replace this great looking Pre-war building with more than likely another glass box, which we have way too much of already and which is pretty much what is being built everywhere nowadays?


Why replace a "great" looking building? My guess is because buildings aren't just there to be seen. It's the year 2013, not 1913. But beyond the fact that I don't buy into the "glass boxes everywhere" argument (it's actually these older buildings that are everywhere in Manhattan), we don't even know what would be built in it's place. I do know that according to city plans, for someone to use all of the available air rights here, they would have to use high quality architecture - the design would have to be approved.

[antinimby]

Well of course! Look who thinks tearing down an old building for a new one is always a good idea.

You make the same argument all the time: Manhattan has a lot of old buildings and a buildings use.

Old buildings like these are not an inexhaustible supply. Over time they will become rarer and rarer while soulless glass buildings like ones in every downtown everywhere slowly but surely take over (and you'll be surprise how quickly these things can happen).

And this current building can always be retrofitted for whatever use they deem most profittable at the moment.

We may not know what the exact look of the new building is but we can pretty much guess that it won't be monumentally great.

[NYguy]

Well of course! Look who thinks tearing down an old building for a new one is always a good idea.

You make the same argument all the time: Manhattan has a lot of old buildings and a buildings use.

Because, if it's the correct argument, why change it? (And I've never said it was always a good idea.)

But forget about "retrofitting". We're in prime midtown Manhattan. It should offer the best, not best adequate. There's a difference.



http://www.dnainfo.com/new-york/20130627/midtown/mtas-madison-avenue-headquarters-make-way-for-luxury-developments

MTA's Madison Avenue Headquarters to Make Way for Luxury Developments


http://assets.dnainfo.com/generated/photo/2013/06/mta-moving-from-madison-avenue-headquarters-1372345193.jpg/extralarge.jpg


By Alan Neuhauser
June 27, 2013


There goes the neighborhood.

The MTA is moving from its Midtown Madison Avenue headquarters and making way for luxury developments that could include a high-end hotel, ritzy residences, Class A offices or some mixture of the three, the transit agency announced on its website Thursday.

The move, taking place at 341, 345 and 347 Madison Ave. between East 44th and East 45th streets, was first announced in April 2011, and it is scheduled to take place by the end of next year.

"It is part of a larger effort the MTA is undertaking that is projected to generate $600 million in cost savings and revenues," the agency stated, namely through consolidating office space, reducing the agency's workforce, and selling property.

The MTA issued a request for proposals from developers on Tuesday seeking a 99-year lease. Whichever company comes aboard, it said, all three buildings are expected to be demolished.

"They cannot be combined and have inefficient floor plates and redundant and antiquated building systems that have rendered them obsolete for office use," the agency said.


The MTA is also seeking or reviewing proposals from developers for eight other properties in New York City.

The building at 347 Madison Ave., a 20-story beige brick and limestone tower originally known as the Equitable Trust Building, has served as the MTA's overall headquarters since the agency bought the structure in 1979. The building, constructed in 1917, is connected to Grand Central Terminal by an underground walkway, and developers will be required to maintain that connection by including an entrance to the new Long Island Railroad concourse, which is being built beneath Grand Central as part of the East Side Access project.

The buildings at 341 and 345 Madison Ave. were bought by the MTA in 1991.

MTA employees who work in the agency's headquarters office will be relocated to the agency's building at 2 Broadway in the Financial District, which already includes the main offices for MTA New York City Transit, which runs trains and buses, MTA Bridges and Tunnels, which oversees river crossings, and MTA Capital Construction, which is building the Second Avenue and East Side Access projects.

Those who work in the MTA Metro-North Railroad offices will move to the Graybar Building at 420 Lexington Ave.

[Barbarossa]

So, is the MTA mandating that something is developed? Is there a risk of this becoming a stalled, vacant lot. Does the MTA get proceeds from the sale of land or the revenue from the project?

[scalziand]

The MTA gets $150 million or so from a 99 year lease of the land. I believe that that's regardless of whether or not the developer actually builds something- strong incentive for the developer not to leave it an empty hole.

Under the terms of the agreement with the MTA, the developer would pay monthly fixed-base rent payments, subject to scheduled increases of at least 10 percent every five years and base rent adjustments every 30 years.

[Crawford]

Old buildings like these are not an inexhaustible supply. Over time they will become rarer and rarer while soulless glass buildings like ones in every downtown everywhere slowly but surely take over (and you'll be surprise how quickly these things can happen).


This is totally wrong. The vast majority of old buildings in Manhattan are in landmarked districts.

Even if every single old building that could be demolished were actually demolished, it wouldn't have a major effect on the overall stock of old buildings.


We may not know what the exact look of the new building is but we can pretty much guess that it won't be monumentally great.

I'm willing to take my chances on something new over the current building, which is an ugly dump.

[Eidolon]

MTA's Madison Avenue Headquarters to Make Way for Luxury Developments (http://www.dnainfo.com/new-york/20130627/midtown/mtas-madison-avenue-headquarters-make-way-for-luxury-developments)
By Alan Neuhauser
June 27, 2013

There goes the neighborhood.

The MTA is moving from its Midtown Madison Avenue headquarters and making way for luxury developments that could include a high-end hotel, ritzy residences, Class A offices or some mixture of the three, the transit agency announced on its website Thursday.

The move, taking place at 341, 345 and 347 Madison Ave. between East 44th and East 45th streets, was first announced in April 2011, and it is scheduled to take place by the end of next year.

"It is part of a larger effort the MTA is undertaking that is projected to generate $600 million in cost savings and revenues," the agency stated, namely through consolidating office space, reducing the agency's workforce, and selling property.

The MTA issued a request for proposals from developers on Tuesday seeking a 99-year lease. Whichever company comes aboard, it said, all three buildings are expected to be demolished.

"They cannot be combined and have inefficient floor plates and redundant and antiquated building systems that have rendered them obsolete for office use," the agency said.

Another supertall for Midtown? Bring it on!
:yes:

[antinimby]

Fuck the MTA!

[NYguy]

http://therealdeal.com/blog/2013/10/12/mta-headquarters-again-up-for-grabs/


Plans call for a developer to demolish the current structure along with two adjacent buildings and redevelop the site, according to the New York Post.

The winner “will be able to commence the redevelopment under the proposed upzoning immediately after the MTA vacates the property,” according to the new call for proposals.

If rezoning is approved by the City Council and signed by the mayor, development should be able to start two to three years sooner than the 2017 date originally planned on.

Rezoning would also most likely help the MTA see a higher price for the long-term lease it will award to the winning developer, according to Steven Spinola, president of the Real Estate Board of New York.




http://nypost.com/2013/10/11/mta-seeks-new-bids-for-midtown-headquarters-site/

The agency is seeking fresh proposals from real-estate developers, citing changes to the Midtown East rezoning proposal, after receiving a first round of bids in mid-August.



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[hunser]

I don't know about you guys, but I just can feel that we are heading towards very exciting times. The city is already experiencing an incredible boom, but my gut tells me we'll be seing even more tall towers going up in the next years.

[NYguy]

I don't know about you guys, but I just can feel that we are heading towards very exciting times.

Heading that way? It's already pretty exciting for me. The developments on the east side may be a little further off, but we could eventually be seeing some very nice designs, regardless of height. We have a lot to look forward to.

[Perklol]

It seems like there are much office buildings proposals. I think they should cancel WTC b/c of floods and poor commuter rail access. GCT has (LIRR (2019) + Metro-North).

[NYguy]

It seems like there are much office buildings proposals. I think they should cancel WTC b/c of floods and poor commuter rail access. GCT has (LIRR (2019) + Metro-North).

Yeah. You know, with winter coming, I think they should cancel all of the replenishment projects of the local beaches. No one will got there anyway, because it will be too cold. And there might be another flood in a hundred years or so.

[NYguy]

http://www.crainsnewyork.com/article/20140530/REAL_ESTATE/140539993&template=print

De Blasio resets the clock on massive rezoning
The rezoning of a huge swath of midtown won't begin in earnest until 2015, Mayor Bill de Blasio announced Friday. But at least one major developer will get a head start.


Andrew J. Hawkins
May 30, 2014


Mayor Bill de Blasio announced a new timeline for the rezoning of a large swath of east midtown in Manhattan Friday, one that could stretch into 2016 but will allow for one major skyscraper project to get started in the meantime.

Under a special permit to be issued by the city and subject to public review, SL Green will build a 1.6 million-square-foot office building adjacent to Grand Central Terminal on Vanderbilt Avenue between East 42nd and East 43rd streets.

The public review process for the surrounding five blocks along Vanderbilt Avenue will begin this fall.

Mr. Weisbrod confirmed two other development sites as part of the initial Vanderbilt corridor rezoning: a property on Madison Avenue owned by the Metropolitan Transportation Authority, and the Roosevelt Hotel on East 45th Street.

[Crawford]

The Roosevelt Hotel site already has more air rights than SL Green's One Vanderbilt, so hopefully we get something as tall or even taller here.

[NYguy]

Yeah, these are the major development sites in the Midtown East rezoning, at least the sites that would have the highest concentration of FAR. It's interesting that 425 Park didn't get in on the early action, as they are moving forward with their plans also. But they had previously stated it wouldn't matter to them. I wonder if any opinions have changed on that.

[Perklol]

I'm assuming the MTA site will be suitable for a hotel?

Mr. Weisbrod confirmed two other development sites as part of the initial Vanderbilt corridor rezoning: a property on Madison Avenue owned by the Metropolitan Transportation Authority, and the Roosevelt Hotel on East 45th Street.

Amazingly handsome buildings.:slob: It just hurts to know of its fate...

[NYguy]

I'm assuming the MTA site will be suitable for a hotel?

Office more likely. It will be harder to build hotels under the rezoning, which is primarily to encourage new office construction.

[Submariner]

Yeah, these are the major development sites in the Midtown East rezoning, at least the sites that would have the highest concentration of FAR. It's interesting that 425 Park didn't get in on the early action, as they are moving forward with their plans also. But they had previously stated it wouldn't matter to them. I wonder if any opinions have changed on that.

When does work start on that?

[Submariner]

Yeah, these are the major development sites in the Midtown East rezoning, at least the sites that would have the highest concentration of FAR. It's interesting that 425 Park didn't get in on the early action, as they are moving forward with their plans also. But they had previously stated it wouldn't matter to them. I wonder if any opinions have changed on that.

When does work start on that?

[NYguy]

^ That begins next year I believe.


Here's what I mean about the hotels...


http://online.wsj.com/articles/new-york-city-union-seek-hotel-limit-in-grand-central-area-1403052461

City, Union Seek Hotel Limit in Grand Central Area
Proposal Would Require Developers Aiming to Build Hotels to Receive Special Permit


By Laura Kusisto
June 17, 2014


A proposal to allow taller towers near Grand Central Terminal includes a concession to the hotel-workers union that helped derail a similar proposal under former Mayor Michael Bloomberg and could signal the group's power under the new administration at City Hall.

No hotels in a proposed rezoning area—five blocks of Vanderbilt Avenue from East 42nd Street to East 47th Street—could be built without a special permit from the City Planning Commission and the City Council, according to a public document outlining the proposal.

Such a requirement would trigger a lengthy approval process with public scrutiny, potentially limiting the construction of hotels in the area. It would also allow the Hotel Trades Council to push public officials to support projects that have agreements in place about the right to organize workers.

Both the union and the city have an interest in making hotel development in the area difficult. The administration is trying to promote office development to make New York competitive with cities such as London and Shanghai, and it doesn't want those sites targeted primarily by hotel developers. The union is concerned that rapid hotel development shrinks room prices and profit margins, driving down the wages of its members.

A breakdown in negotiations over the hotel permit was one reason behind the failure of the Bloomberg administration to win council support last year for its Midtown East rezoning. It was forced to withdraw the plan, which would have allowed about a dozen new towers in a district around Grand Central Terminal.

Mr. Bloomberg also wanted a special permit, but it was more limited than the new proposal: It would only have applied to buildings that were at least 20% hotel space and that were using the rezoning to build taller buildings than otherwise allowed.

Under Mayor Bill de Blasio's proposal, all sites on Vanderbilt Avenue would require a special permit for hotels that are built, enlarged or converted from existing buildings.

City officials said the permit would ensure that the rezoning accomplishes its intended purpose—paving the way for new office development in the area.

"To the extent that hotel development occurs there, we believe a special permit is important to ensure that hotels include amenities and services that are complementary to a premier business district, and that they do not undermine the principal objective, which is to create first class, 21st century commercial space," a spokeswoman for the Department of City Planning said.

The proposed permit would have symbolic value, but its practical effect is likely limited because little room is available for new hotel development in the five-block Vanderbilt Avenue rezoning area.

Both the hotel workers' union and a group representing hotel owners issued cautious responses. They said negotiations about the rezoning were only beginning and that final permit requirements remained unclear.

A spokeswoman for the Hotel Association of NYC, which represents owners, said the group was "watching developments." She added: "In general, hotels do not need more regulation and red tape."

Josh Gold, director of political strategy and affairs at the Hotel Trades Council, said the group supported rezoning Midtown East to provide infrastructure improvements and new office space. "We are excited to be working with the community, the Mayor and the Council to get a plan passed that meets these goals," he said.

The de Blasio administration carved Vanderbilt Avenue out of the larger proposed rezoning area to smooth the way for a quick approval as SL Green Realty Corp. seeks to build a tower near Grand Central.

It is unclear whether the hotel permit will be part of a larger proposed rezoning of the Grand Central area. City Councilman Daniel Garodnick, who represents the area, and Manhattan Borough President Gale Brewer are leading a community consultation process expected to begin in the coming months.

"I've always supported union wages, prevailing wages, but I think it's unfair for me to prejudge at the beginning of the working group process," said Ms. Brewer. "I have a long history working with unions."




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[NYguy]

http://therealdeal.com/blog/2014/10/03/bidding-reopened-for-mtas-midtown-headquarters/

Bidding reopened for MTA’s Midtown headquarters
Winner is expected to build a skyscraper at the site


http://s13.therealdeal.com/trd/up/2014/10/MTAfinal.jpg


October 03, 2014


The Metropolitan Transportation Authority has reopened the bid for the long-term lease on the agency’s headquarters at 341-347 Madison Avenue. The MTA is vacating the location between 44th and 45th streets. Whoever wins the bid is expected to build a skyscraper there, according to the New York Post. Interested bidders have until October 14 to submit their proposals.



http://nypost.com/2014/10/02/mta-reopens-bidding-for-midtown-headquarters-site/

MTA reopens bidding for Midtown headquarters site


By Lois Weiss
October 2, 2014


As the city’s plans gel for Vanderbilt Ave. rezoning, the MTA has quietly reopened the bidding for the long-term lease on its headquarters block at 341-347 Madison Ave.

The site between E. 44th and 45th streets is being vacated and the winning bidder is expected to tear it down and put up a new skyscraper.

Developers have until Oct. 14 to amend their bids or submit new proposals, according to the Sept. 17 notice. The MTA sent out its original request for proposals in June 2013 and later extended its deadline to October 2013 while reopening it to new bidders. But once de Blasio was elected the major Midtown East rezoning was scrapped and since then, the MTA deal has been in a holding pattern.

Cushman & Wakefield is overseeing the bidding on behalf of the MTA. Reps for both declined to comment.

The agency is asking that new bids for the building be based on a floor area ratio (FAR) of between 24 and 30, or as much as 753,150 square feet. Right now zoning laws would allow 376,575 square feet.

There are also requirements to “support public circulation” in the area either on or off site, and the developer would have to meet “findings” with regard to the ground floor level, the massing and energy performance of the new building.

Additionally, landmark properties are expected to be able to transfer more air rights to the new structure, and any hotel within the new Vanderbilt Corridor would also need a special permit.

Steven Spinola, president of the Real Estate Board of New York, said the Vanderbilt zoning proposal should be certified by City Planning by the end of October. “Up until recently there was uncertainty as to what the city was doing. Hopefully, this will encourage people to take another look at this site.”



Another look at the location, a block north of the 1 Vanderbilt project (site 1279)


http://www.pbase.com/nyguy/image/156159101/original.jpg

[Submariner]

What do you think the maximum square footage would translate to in terms of height?

[NYguy]

What do you think the maximum square footage would translate to in terms of height?

Don't know.

The agency is asking that new bids for the building be based on a floor area ratio (FAR) of between 24 and 30, or as much as 753,150 square feet. Right now zoning laws would allow 376,575 square feet.

Additionally, landmark properties are expected to be able to transfer more air rights to the new structure


For comparison, 425 Park is about 670,000 ft, but they're building without any additional air rights.

And the MTA site is only half of the block. Any developer would likely try to consolidate the block, as was done with 1 Vanderbilt.

[Crawford]

750,000 square feet + tiny site = likely supertall

This will probably be residential/hotel, as the site is too small for office. In any case, I don't see a likely scenario where a supertall isn't built, given the generous zoning and site constraints.

[NYguy]

750,000 square feet + tiny site = likely supertall

This will probably be residential/hotel, as the site is too small for office.

It's the same size as the 1 Vanderbilt block. But barring that, it's still a suitable footprint for office similar to 425 Park. Then there's the issue of obtaining more air rights, which seems likely.
I think it's more likely to be office. The current rezoning for this stretch is going through the approvals process, but there would have to be another for any hotel. That area is rich with assets,
and we saw the Waldorf, one of the classic hotels go for $2B today. I would put my money on a trophy office tower, which has been what that area is known for.



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http://www.pbase.com/nyguy/image/157721170/original.jpg

[Crawford]

It's the same size as the 1 Vanderbilt block. But barring that, it's still a suitable footprint for office similar to 425 Park.

You're right, if they assemble the whole block, then yes, it will likely be office.

But the current site is tiny and much smaller than that of 425 Park. 425 Park is a giant site, deep and spanning the entire block. 347 Madison is a tiny site, shallow and covering maybe 30-35% of the blockfront.

I would guess that 425 Park has a footprint 3-4 times the size of 347 Madison.

[Perklol]

really going to miss all those pre-war beauties in that block...

Hopefully something spectacular gets built there but that seems like a stretch. I mean take a look at the monstrosity next door. :frog:

[NYguy]

^ The good news is that there are like a thousand more blocks of pre-wars in Manhattan for you to marvel at.


You're right, if they assemble the whole block, then yes, it will likely be office.

But the current site is tiny and much smaller than that of 425 Park. 425 Park is a giant site, deep and spanning the entire block. 347 Madison is a tiny site, shallow and covering maybe 30-35% of the blockfront.

I would guess that 425 Park has a footprint 3-4 times the size of 347 Madison.


Not that much, but look at the floor plats of 425 Park Avenue. There is a market for that, not all of the new towers will have massive floor plates. But the purpose of the rezoning, particularly this are clustered around Grand Central is for office development, so the city is encouraging the greater FARs for that. Full service hotel use would also be allowed, on a special permit basis.

The FAR for residential would be 10, or roughly a third of development space. We see this playing out in the Hudson Yards where Silverstein is seeking approval to building more residential than is allowed, due to the unique nature of his site. I don't see that as an issue here.


Using One Vanderbilt for example, we see how much could go to each (separately). Whatever amount of residential that could be built (up to the 10 FAR) would be subtracted from the commercial space: (comparing today's zoning with proposed zoning)


http://www.pbase.com/nyguy/image/157726319/original.jpg



A look at the current buildings on the MTA site...


http://www.pbase.com/nyguy/image/157726320/original.jpg



http://www.pbase.com/nyguy/image/157726321/original.jpg



Landmark transfers would also be involved in determining size...


http://www.pbase.com/nyguy/image/157726323/original.jpg


And the public/transit improvement bonus...


http://www.pbase.com/nyguy/image/157726324/original.jpg

[NYguy]

Just some notes on potential transfers in the area...


http://nypost.com/2014/10/14/palantir-parks-at-west-15th-street-garage-site/


By Lois Weiss
October 14, 2014


The eventual sale of 230 Park Ave. by Monday Properties through CBRE could make it a participant in the Vanderbilt Corridor rezoning and revitalization, even though the landmark building itself can’t be touched.

Monday Properties repurchased the distinctive building in December 2007 after owning it earlier under the Max Capital moniker.

One bonus for a buyer would be its transferable air rights (TDR) as the corridor is being rezoned to bump the permissible floor area from 21.6 to a 30 FAR.

This means there are a handful of players that could team up to buy the building for its extra air rights.

According to a back-of-the-envelope computation by “Sky King” Robert Shapiro of City Center Real Estate, who specializes in air rights transfers, 230 Park has 81,538 square feet of air that could be transferred through a sale, for instance, to the winner of the MTA headquarters redevelopment of 347 Madison.

Bids for the 99-year lease of that site were due by e-mail to Cushman & Wakefield on Oct. 14 at 5 p.m.

The brokerage declined comment.

But RXR Realty and Walton Street Capital, which own 237 Park Ave., could effectuate a zoning lot merger and obtain as many as 219,846 square feet for additional development.

At one point, 230 Park’s current seller, Monday Properties, controlled both 230 and 237 Park and was going to merge them to construct a new tower on land by 237 Park.

But Monday, then in its Max Capital configuration, still needed to buy additional air rights, which never happened.

Andrew Penson’s Argent Ventures owns 1,285,011 feet of air rights according to public documents while the MTA also retained 100,000 square feet.

Penson has been vocal about getting cut out of the air rights sales process by the city, which has tried to limit the price.

He did not return calls for comment.

[NYguy]

http://nypost.com/2015/01/15/they-aint-making-more-of-it-land-and-location-drive-pricing/


By Lois Weiss
January 15, 2015


The sale of the Metropolitan Transportation Authority headquarters at 347 Madison Ave. through Cushman & Wakefield is down to finalists who will use it as a development site that will also benefit from the district’s zoning.

[Eidolon]

City Official Questions MTA Property Deal (http://www.nasdaq.com/article/city-official-questions-mta-property-deal-20160224-01426)
February 24, 2016
By Dow Jones Business News

A deal to redevelop the Metropolitan Transportation Authority's former headquarters was put on hold after a top New York City official questioned whether a private developer should be able to avoid paying potentially hundreds of millions in city taxes.

At issue is a deal under which Boston Properties would build a new midtown Manhattan skyscraper on the site of the authority's Madison Avenue office buildings near Grand Central Terminal.

Ms. Trottenberg questioned "whether you're unfairly letting them get out of paying their property taxes. A private entity should pay."

The city would otherwise expect to reap hundreds of millions of dollars in property tax revenue over the course of the proposed 99-year lease, depending on how large the skyscraper winds up being built, she said.



The objections by Ms. Trottenberg called into question, at least for now, a chunk of funding for major construction and repair projects.

The MTA said it expected the deal in part to contribute $110 million toward its 2015-2019 capital plan. Funding for the $26 billion plan remains uncertain.

Ms. Trottenberg said the city's questions weren't related to a long-standing dispute between Mayor Bill de Blasio, her boss, and New York Gov. Andrew Cuomo, who in effect controls the state-run MTA.

"This is just something we need a little time clarifying," she said.

[NYguy]

http://www.nydailynews.com/new-york/mayor-de-blasio-mta-board-rep-stalls-430m-real-estate-dea-article-1.2543216

Mayor de Blasio's MTA board rep stalls $430M real estate deal for capital program


BY DAN RIVOLI
February 25, 2016


Mayor de Blasio's rep on the MTA board is holding up a real estate deal that would give the transit agency $430 million for its capital program.

Polly Trottenberg, de Blasio's transportation commissioner, asked for a last-minute delay ahead of a vote to let developer Boston Properties take over the old MTA headquarters on Madison Ave. in Midtown.

A sticking point for Trottenberg and the city was the fact that Boston Properties would be exempt from paying property taxes to the city, which could put a dent in its coffers. Instead of property taxes, Boston Properties would make those payments to the MTA.

“There is a real question we need to work through … about whether the MTA can just transfer its tax exempt status to a private company for a 99-year period, whether that can work," Trottenberg said.

MTA chair Tom Prendergast defended the deal as a way to pump more money into the $29 billion capital plan waiting for approval in Albany.

“The revenues that we would get from it would go toward public good in terms of investment in the transit system,” Prendergast said.

While MTA board members agreed to hold off on approving the transaction for at least a month, several were concerned about missing out on revenue from the deal due to a delay in approval.

“Time is money,” board member Norman Brown said. “Next month, it’s going to be harder to vote on it. It’s not a free month.”

Boston Properties Chief Financial Officer Michael LaBelle declined to comment.

[NYguy]

http://www.pbase.com/nyguy/image/157721168/original.jpg



http://ny.curbed.com/2016/5/10/11650954/nyc-landmarks-midtown-east-buildings-identified

LPC Earmarks 12 Midtown East Buildings As Part of Neighborhood Revitalization
Includes the Graybar Building, the Pershing Square Building, and the Yale Club of New York among others


https://cdn1.vox-cdn.com/thumbor/GB7m6066ZBuBLwwelHv6KY5zGPo=/800x450/filters:focal(1212x748:1672x1208):no_upscale():format(webp)/cdn1.vox-cdn.com/uploads/chorus_image/image/49564595/Yale_Club_high_jeh.0.jpeg
The Yale Club of New York pictured here is one of the buildings being considered for landmarking



BY TANAY WARERKAR
MAY 10, 2016


The city's Landmarks Preservation Commission has identified 12 buildings in Midtown East, including the Graybar Building and the Pershing Square Building, to be potentially landmarked in the future. It's part of the agency's move to provide greater protection to historic buildings in the neighborhood.

In 2014, Mayor Bill de Blasio created the East Midtown Steering Committee to tackle a series of goals for the neighborhood including density, sustainability, and historic preservation. That's where the LPC comes into the mix.

The agency studied the area known as Greater East Midtown, which spans East 39th to East 57th Streets, from Fifth Avenue to Second Avenue. And through that study the LPC identified three eras of development — buildings constructed prior to the existence of the Grand Central Terminal (pre-GCT), those built during its construction or soon after, and finally, those that were built after 1933 (post--GCT).

Buildings were then selected from each era and calendared to be considered at a future date. Most of the ones chosen including the Graybar Building and the Pershing Square Building were from the Grand Central Terminal era, when construction was spurred by improvements in transit.

"Greater East Midtown has always been the commercial center of New York, and its authenticity and dynamism largely derive from the textured coexistence of historic buildings and new construction," Meenakshi Srinivasan, the chair of the LPC, said in a press release. "Our challenge was to conceptualize a preservation strategy to protect a collection of significant buildings that, together, establish a historical narrative that will continue to be legible amidst future change."

East Midtown already has 38 individual landmarks and one historic district, and landmarking the 12 selected buildings could potentially bring that up to 50. Some of the other buildings under consideration include the Hampton Shops Building, the Yale Club of New York, and the Shelton and Beverly Hotels.

[De Minimis NY]

I hope they’re very liberal in doling out landmark status to the buildings in the GTC era (especially the Pershing Square Building, Yale Club and Roosevelt Hotel). That’s too important an era to see scrubbed from the city’s history.

Plus, under the Bloomberg plan those buildings would have the ability to transfer their unused development rights to adjacent buildings (and, I think, across the street), so hopefully aggressive landmarking would just result in taller buildings on smaller plots.

[Crawford]

I hope they’re very liberal in doling out landmark status to the buildings in the GTC era (especially the Pershing Square Building, Yale Club and Roosevelt Hotel). That’s too important an era to see scrubbed from the city’s history.

The Roosevelt Hotel is undistinguished, already earmarked for a massive development, and has no chance. The others are possibilities, though.

And LPC better be conservative in dolling on landmarking. You're embalming a building in amber. It better be damn distinguished, and not just some NIMBY excuse to block development.

[De Minimis NY]

^^ The Roosevelt Hotel is a solid representation of its era with really great street presence. I'd be willing sacrifice it for something of the quality of 111 57th street or Torre Verre, but it would be hard to argue that it's not preferable to 90% of new development out there.

None of that should really matter much if the newly created development rights are freely transferable, though.

We're going to get a fixed amount of new FAR either way. Would it not be better to concentrate those new zoning rights on ugly sites (and end up with relatively taller towers) than spread it out across a greater number of sites, with a plateau of relatively shorter towers, and lose gems like the Roosevelt in the process?

I felt the same way when I saw the destruction of the Bancroft Building for that new HFZ condo. It's bittersweet, as it's great to see new designs going up, but you can't help but wish they could have put the new tower on one of the many ugly sites in the neighborhood.

Well, with liberal landmarking and transferable development rights you can create the conditions to do just that.

[NYguy]

http://nypost.com/2017/01/10/mta-relocating-to-larger-building-amid-midtown-redevelopment/

MTA relocating to larger building amid Midtown redevelopment

By Lois Weiss
January 10, 2017


The Metropolitan Transportation Authority is expanding to 152,000 square feet at the Center Building at 33-00 Northern Blvd. in Long Island City.

Along with adding 17,000 square feet on part of the 6th floor, the state agency renewed until 2026 its lease on part of the seventh floor and entire eighth floor.

Josh Kuriloff and Jodi Roberts of Cushman & Wakefield represented the MTA, which is rejiggering its occupancies as it prepares to turn over its Madison Avenue buildings in Midtown to Brookfield Property for redevelopment.

In a direct deal, the city’s Human Resources Administration was also renewed, for 150,000 square feet.

Glen Weiss and Josh Glick repped Center Building owner Vornado for both leases. Sources said asking rents in the building are roughly $40 a square foot.

Cushman & Wakefield and Vornado reps declined comment.

[Crawford]

OK, given that Brookfield is developing this site, I assume a very large, tall, glassy office tower is planned. That's their bread and butter.

This is a large full-block site, and part of the new Grand Central upzoning, so I would guess we're getting something pretty enormous. We'll see.

[JSsocal]

Its not a full block site, the newly landmarked Yale club occupies a quadrant.

Edit: I think YC's neighbor 52 Vanderbilt is also excluded as well, so the new development will only front madison

[De Minimis NY]

The landmarking of the Yale Club and its neighbor were a great outcome, as we'll end up with taller towers while preserving historical architecture at the street level. Given the economic incentives, it's possible that all of these air rights will be concentrated on the MTA site, resulting in an incredibly tall tower.

The Vanderbilt Corridor rezoning increased FAR in the area to 24 as-of-right. Landmarked buildings can take advantage of this by selling unused air rights to other buildings in the corridor (once the Midtown East rezoning passes, the resale zone will be increased to include all of Midtown East as well).

However, rather than sell the air rights to a site on a different block, the best way to maximize value would be for the Yale Club and its neighbor to merge zoning lots with the MTA property instead. That approach would allow Brookfield to absorb the as-of-right FAR from its landmarked neighbors (24 for the block) and also make additional contributions to the transportation fund on its neighbors’ behalf, which would allow it to increase the FAR for the entire block to 30.

The end result would be a tower with nearly the same square footage as One Vanderbilt, but on a site with half the footprint—in other words, a VERY tall tower.

Normally that would be uneconomical, as the floor plates will be somewhat awkward for office use and so there may not be enough demand to justify the additional costs of constructing that tall. In this case, however, this is the only site that can take full advantage of those air rights, so maybe that tips the scales towards building bigger here… at least I hope it does.

[Submariner]

Of course...more unremarkable buildings left to block meaningful development.

[NYguy]

https://www.bloomberg.com/news/articles/2017-07-27/as-nyc-rezones-east-midtown-new-skyscrapers-may-be-long-way-off

By David M Levitt
July 27, 2017


...The new rules would generally allow owners to build as much as 18 to 27 times the area of their site, requiring them to buy air rights to achieve the maximums under the law. They can acquire air rights primarily from two sources: the unused development rights of the many landmarked buildings in the area, or by contributing to a fund to pay for mass-transit improvements at Grand Central Terminal and other subway stations affected by the anticipated higher densities.

...One of the first towers expected to follow SL Green’s is at the former Metropolitan Transportation Authority headquarters at 343 Madison Ave., two blocks north of 1 Vanderbilt. Boston Properties Inc. last year was designated the developer of that site, where it plans a 900,000-square-foot building. In an April 2016 conference call, Chief Executive Officer Owen Thomas described the project as “likely several years out.” The MTA site was part of the earlier rezoning.

[aquablue]

https://www.bloomberg.com/news/articles/2017-07-27/as-nyc-rezones-east-midtown-new-skyscrapers-may-be-long-way-off

By David M Levitt
July 27, 2017

That's a nice old building though. Shame.

[NYguy]

That's a nice old building though. Shame.

Meh.


http://www.pbase.com/nyguy/image/157726320/original.jpg

[aquablue]

Meh.


http://www.pbase.com/nyguy/image/157726320/original.jpg

Ok, most of the tower is pretty dull overall, but the base is worth something. If you keep knocking down all these "meh" towers, you'll find a more generic midtown soon.

[Submariner]

Ok, most of the tower is pretty dull overall, but the base is worth something. If you keep knocking down all these "meh" towers, you'll find a more generic midtown soon.

Midtown is 98% "meh" towers.

[citybooster]

Midtown is 98% "meh" towers.I wouldn't go nearly that high but there are a lot of mediocre high rises. I'm not sure about losing these.. only thing is that though the good news is that the Midtown East zoning got through the City Council and there now at least is the possibility of development it seems easy sites to develop quickly will be sparse and it may take years to get going for the most part according to the news updates, as many will require years to plan and put together the needed parcels of property.

[NYguy]

Ok, most of the tower is pretty dull overall, but the base is worth something. If you keep knocking down all these "meh" towers, you'll find a more generic midtown soon.

I don't think so. There are far more of these buildings in Midtown than anyone can imagine. And the vast majority (over 90%) will never be touched. You lose a few here and there, if they aren't landmarked - and likely for good reason - I see no crime.

What will change if Midtown east can't renew it's office building stock, is its status as the city's premier business district. That would be a shame.

[aquablue]

I don't think so. There are far more of these buildings in Midtown than anyone can imagine. And the vast majority (over 90%) will never be touched. You lose a few here and there, if they aren't landmarked - and likely for good reason - I see no crime.

What will change if Midtown east can't renew it's office building stock, is its status as the city's premier business district. That would be a shame.

I don't know where you got that figure, but if it's true, I suppose it won't be too devastating. I think they should keep the best bases though on these buildings that are to be razed.

[Crawford]

This is being developed by Boston Properties, and will likely be the second office tower to go up in the rezoned Grand Central neighborhood.

Relatively small site and 900k developable area (not counting any air rights purchases) so I would assume something very tall and rather thin for an office tower. Possibly a supertall.

[NYguy]

I don't know where you got that figure, but if it's true, I suppose it won't be too devastating. I think they should keep the best bases though on these buildings that are to be razed.

It's not an exact number. But all you have to do is walk the streets to see. My number actually may not be high enough. But I don't think people realize how many buildings are in New York.

[NYguy]

https://therealdeal.com/2018/08/24/the-mta-is-still-spending-millions-to-maintain-its-empty-headquarters/

The MTA is still spending millions to maintain its empty headquarters
Agency spends roughly $4M a year on 341, 345 and 347 Madison Avenue


https://s13.therealdeal.com/trd/up/2018/08/1200-MTA-345-Madison-650x405.jpg


August 24, 2018


The Metropolitan Transportation Authority is spending about $4 million a year to maintain its empty former headquarters in Midtown thanks to a dispute between the city and state.

The agency announced that it planned to sell or lease the 20-story complex at 341, 345 and 347 Madison Avenue back in 2011, and in 2016, it developed plans to lease the headquarters to Boston Properties for 99 years, according to the Wall Street Journal. MTA officials estimated that the deal would be worth about $1.3 billion, and Boston Properties hoped to build an office tower rising up to 900,000 square feet on the site.

However, the city opposed the deal because the terms said the developer would pay the MTA rather than pay real estate taxes to the city. The MTA expected those payments to be worth $961 million for the length of the lease.


The MTA hopes to resolve these issues soon, and although some said the poor relationship between Mayor Bill de Blasio and Governor Andrew Cuomo was behind the dispute, MTA Chair Joe Lhota told the Journal that this was not the case.

“There has been nothing acrimonious about our negotiation and interaction,” he said.





https://www.wsj.com/articles/mta-still-paying-for-empty-headquarters-after-squabble-between-city-and-state-1535059609


During Mr. Prendergast’s tenure, hundreds of MTA workers were moved into the authority’s offices at 2 Broadway in lower Manhattan so that the headquarters—spread across three adjoining buildings at 341 Madison Ave., 345 Madison Ave. and 347 Madison Ave.—could be sold.


The MTA announced its intention to sell or lease the 25,000-square-foot parcel of land in 2011 as it struggled to recover from the 2007-2008 financial crisis.

In April 2016, the MTA said it intended to lease its headquarters to Boston Properties Inc. for 99 years. At the time, MTA officials estimated that the deal was worth almost $1.3 billion, according to authority documents.

The size of the deal was made possible, in part, because of a change to city zoning laws near Grand Central Terminal that allowed Boston Properties to demolish the headquarters and raise a much larger building in its place. In an earnings call that summer, Boston Properties Chief Executive Owen Thomas said the firm expected to build up to a 900,000-square-foot office tower.


On a recent weekday, one worker sat behind a desk in the building’s empty lobby while another worker sat on an office chair in front of an elevator bank.

A few shoppers drifted in and out of two clothing stores at street level. A third storefront sits empty, with a New York City Marshal’s notice dated June 2017 pinned to the window.

Two blocks south, a sign of what could one day replace the MTA headquarters is taking shape. One Vanderbilt, a planned 1,400 foot tower, is rising on the corner of 42nd Street.

People familiar with the MTA deal say that the city and the state are edging toward an agreement that will give the city a share in the development.

[JMKeynes]

These buildings are almost totally empty. I wonder if demo is imminent.

[Crawford]

I hope Boston Properties delivers a spectacular supertall. This is an A+ location.

[JMKeynes]

I agree, but I doubt it. BP builds crap in NY.

[NYguy]

https://www.crainsnewyork.com/real-estate/mta-deal-city-clears-way-skyscraper-near-grand-central

MTA deal with city clears way for skyscraper near Grand Central

Bloomberg
April 2, 2020


City and state officials have reached an agreement on the redevelopment of the former Metropolitan Transportation Authority headquarters near Grand Central Terminal, ending years of squabbling over the project.

The site at 341-347 Madison Avenue is projected to bring in more than $1 billion for the MTA’s capital program, the agency said in a statement.

Boston Properties Inc. has been “conditionally designated” to lease the site and construct an office tower that will include an entrance to a new Long Island Rail Road terminal at Grand Central, the MTA said.


The MTA announced in 2011 that it wanted to sell the Madison Avenue buildings, but the project has been stalled for years due to disagreements over the revenue. Now, funding shortfalls associated with the coronavirus have kick-started the project

The deal calls for New York City to use $600 million from the development to fund obligations to the transit agency, according to the statement.

“With the MTA and our government funding partners still assessing the budgetary implications of the coronavirus pandemic, this funding is more important than ever,” MTA Chief Financial Officer Bob Foran said in a statement. “It demonstrates how the MTA is taking every step it can to shore up its funding.”

The MTA, which runs the largest public transportation system in the nation, needs cash. The transit system is losing an estimated $125 million a week in fare revenue and bridge and tunnel toll receipts as ridership plummets during the coronavirus outbreak.

The MTA is set to receive $4 billion in federal aid to cover the lost revenue, but Pat Foye, the agency’s chief executive officer, has said it will need more state and federal assistance.

The MTA site includes 347 Madison, which was built in 1929 and originally known as the Equitable Trust Building. The transit agency was stationed at there from 1979 until 2014, when it moved to 2 Broadway.

The proposal still needs formal zoning approval.

[Hudson11]

This sounds like it will be a 425 Park situation. The site calls for a grander skyscraper (sitting on the lucrative Vanderbilt corridor), but now they're going to build something new sooner rather than later affixed with those transit improvements. Full demo here, of course, but it may not be a supertall if they're insecure about funding. Pull it down, put something better up asap and lease it.

edit: I think I read that wrong. The MTA is the one with a funding shortfall (decrease in ridership) BP is the developer here, so maybe that won't be reflected in the design.

[NYguy]

If there's funding shortfalls, this sounds like it will be a 425 Park situation. The site calls for a grander skyscraper, but they're going to build something new sooner rather than later. Full demo here, of course, but it may not be a supertall if they're insecure about funding.

The funding shortfall refers to the state shortfall, not the developers. This will be built as usual, utilizing the new midtown east rezoning. The Grand Hyatt redevelopment is another development that could free up some money for the MTA, which desperately needs it.




https://www.bloomberg.com/news/articles/2020-04-02/mta-deal-with-city-clears-way-for-skyscraper-near-grand-central

MTA Deal With City Clears Way for Tower Near Grand Central


https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i0Fil5AZ2e5k/v0/1000x-1.jpg


By Natalie Wong and Michelle Kaske
April 2, 2020


City and state officials have reached an agreement on the redevelopment of the former Metropolitan Transportation Authority headquarters near Grand Central Terminal, ending years of squabbling over the project.

The site at 341-347 Madison Avenue is projected to bring in more than $1 billion for the MTA’s capital program, the agency said in a statement.


The deal calls for New York City to use $600 million from the development to fund obligations to the transit agency, according to the statement.

“With the MTA and our government funding partners still assessing the budgetary implications of the coronavirus pandemic, this funding is more important than ever,” MTA Chief Financial Officer Bob Foran said in a statement. “It demonstrates how the MTA is taking every step it can to shore up its funding.”

The MTA, which runs the largest public transportation system in the nation, needs cash. The transit system is losing an estimated $125 million a week in fare revenue and bridge and tunnel toll receipts as ridership plummets during the coronavirus outbreak.

[NYguy]

The full press release...



http://www.mta.info/press-release/mta-headquarters/mta-and-city-new-york-announce-agreement-dedicate-347-madison-avenue

MTA and City of New York Announce Agreement to Dedicate 347 Madison Avenue Redevelopment Proceeds to MTA Capital Program
Revenue from Redevelopment of MTA-Owned Site 341-7 Madison Avenue to Generate More Than $1 Billion for MTA Capital Investments


April 2, 2020


The Metropolitan Transportation Authority (MTA) and the City of New York today announced an agreement on a site-specific value capture strategy to jump-start development of 341-7 Madison Avenue, the site of the MTA’s former headquarters East Midtown. Real estate taxes and other revenue generated from the future ground lease for the redevelopment of the property will be dedicated to the MTA capital program.

The redevelopment plan is expected to generate more than $1 billion over the life of the ground lease to fund approved transit projects. It provides a creative way for the City of New York to fulfill its obligation to provide $600 million from alternative non-tax-levy revenue sources as part of its $2.66 billion contribution to the MTA’s 2015-2019 Capital Program. It also demonstrates the MTA’s commitment to maximizing the value of its real estate assets.

In addition, like other developments in East Midtown, more transit improvements in Grand Central Subway will be completed in conjunction with the project.


“The deal embodies the MTA’s commitment to maximize the value of its assets for the public’s bottom line,” said Janno Lieber, President of MTA Construction & Development. “The project is an example of environmentally friendly transit-oriented development. The new project will include a new entrance on Madison Avenue with direct connection to Grand Central and the new Long Island Rail Road terminal. The terminal is set to open in 2022. Optimizing connections between jobs and public transportation is key for future economic growth all over the downstate region.”

“The revenue associated with this agreement fills a critically needed funding segment for our Capital Program,” said MTA Chief Financial Officer Robert Foran. “With the MTA and our government funding partners still assessing the budgetary implications of the coronavirus pandemic, this funding is more important than ever. It demonstrates how the MTA is taking every step it can to shore up its funding.”

“This type of redevelopment deal is consistent with what we envisioned when we agreed on a funding commitment to the MTA’s 2015-2019 Capital Plan,” said New York City First Deputy Mayor Dean Fuleihan. “Through mutual agreement, we were able to find a creative way to fund transit projects on behalf of riders, while also ensuring that the maximum potential of the East Midtown Rezoning is fully realized.”


“Our East Midtown Rezoning provided a way to responsibly increase the economic value of one of the city’s most vibrant and transit-oriented areas,” said Vicki Been, New York City Deputy Mayor for Housing and Economic Development. “This transaction builds on our success to date at One Vanderbilt and 270 Park Ave by further generating first class space to attract new businesses and good jobs to the City while ensuring the new developments invest in transit and public spaces that will benefit the business district and everyday New Yorkers.”

The Madison Avenue site served as the MTA’s headquarters from 1979 until 2014, when employees were moved to 2 Broadway where they are co-located with the headquarters of MTA New York City Transit and MTA Bridges and Tunnels. 347 Madison was built in 1917 and was originally known as the Equitable Trust Building after the bank that first occupied the building.

The MTA issued an open, competitive request for proposals from the real estate development community seeking maximum return for the prime site. The request generated intense competition, with nine entities submitting bids to lease and redevelop the site. Boston Properties was conditionally designated as the developer of this site. The project proposal will be evaluated through New York City’s Uniform Land Use Review Procedure and propose a set of transit improvements to be constructed to earn a zoning bonus.

[Submariner]

Is this going to be an entire block development?