[NYguy]

https://nypost.com/2018/10/15/midtow...sales-revamps/

Midtown East rezoning sparks flurry of building sales, revamps





By Lois Weiss
October 15, 2018

At 425 Park, with Citadel as an anchor tenant, L&L Holdings moved ahead with a complete renovation prior to the new rezoning. The building will begin tenant fit-outs in March 2019, says David Berkey of L&L. New leases in the base have an asking rent of $185 per foot and go upwards from there.

“When 425 Park is done, it will change the whole tenor of the area,” says Robert Burton of Cushman & Wakefield, who reps the retail space for sale or lease at 417 Park.

Meanwhile, co-op residents of that 16-story building were offered millions to move by Kushner Cos. The board has now hired CBRE to field offers to sell and redevelop the building.

The Italian owners of the small adjacent Stefano Ricci retail building at 407 Park Ave. are also being courted to sell. Already, the owners of 405 Park — MRP Realty and Deutsche Wealth & Asset Management — are buying air rights to add a mere four floors.

“Many buildings on Park Avenue are doing it,” says John Maher of CBRE. “There is a lot of uninspiring real estate and an opportunity to create great architecture and modern buildings for the 21st-century tenant without disrupting the character of Park Avenue.”

In the interim, some owners are adding termination agreements, which may prompt tenants to go elsewhere or ask for reduced rents.

“There are a few buildings with termination rights, but it is super costly. And, evidenced by 425 Park, you have to take down the building and earn no income for three to five years until you can construct something great,” says Evan Margolin of Savills Studley.