A Park Avenue office building, which caused three Manhattan landlords to lose $38.6 million eight years ago, is in contract to be sold for $240 million.
MRP Realty and Deutsche Bank Asset Management have arranged to purchase 405 Park Ave., a 17-story building on the corner of East 54 Street, for $240 million from the Donerail Corp., the 175,000-square-foot property’s longtime owner.
The pending sale of 405 Park demonstrates how much property values have not only rebounded but soared. The property is located along one of Manhattan’s most expensive office corridors where rents routinely surpass $100 per square foot.
Just one block away, for instance, L&L Holding Company is constructing a new office tower at 425 Park Ave., where it is seeking rents that top $300 per square foot—a record for the city. Although 405 Park Ave. is nearly fully leased, MRP Realty and Deutsche Bank Asset Management have the option to renovate the property and cash in on rising rental rates in the neighborhood as space in the property becomes available as leases expire.
As per The Real Deal, the old building next door will be razed. It would have been nice if the two lots could be combined, but it appears to entail different developers. I always wanted a 1,000'+ Stern on this site with condos and boutique office space.
Permits Filed To Demolish 17-Story Park Avenue Building
The Midtown office building will reportedly be rebuilt into a taller tower after owners purchased air rights from St. Patrick's Cathedral.
Nick Garber
Jan 15, 2021
Quote:
Permits were filed with the city on Wednesday to demolish a 17-story office building on Park Avenue that is reportedly set to be rebuilt into a glassy tower.
The current building, at the corner of Park Avenue and East 54th Street, was purchased by MRP Realty and Deutsche Bank Asset Management in 2016, according to the Architect's Newspaper.
Two years later, the owners purchased the air rights of St. Patrick's Cathedral, allowing them to gut their building and raise the height by four stories, as well as install a new all-glass façade, according to the newspaper.
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“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
That's using the 30,000 square feet of air rights. I wonder what kind of massing we could be looking at.
If this somewhat has a similar parcel dimension to say 432 Park, and they go with condos or something in the residential spectrum, could be kind of sizable I feel.
Would be nice for 423 and 425 Park to have some larger company, even if slender in nature.
It'd be a real shame if these two plots couldn't be combined to put up a larger tower as envisioned by the rezoning. The point of the rezoning was modernization, but still, a 17 floor office building biting the dust for a 21 story one and a beautiful pre-war co-op going the way of the dodo for who knows what would be an aesthetic overlook for the neighborhood.
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click here too see hunser's list of the many supertall skyscrapers of New York City!
It could yield something substantial if part of the same assemblage. For the location, they should definitely go for the option that allows max potential.
Even if they have to wait based on their risk mitigation, better to have something grand per say than lackluster and short. If it goes residential, could be sizable if the two are combined.
I thought the former residential building to the north now has the same ownership. I remember reading something where the northern site sold to the owners of the southern site, or vice-versa.
This is an assemblage, probably for a full-block trophy office tower. The entire block now has demo filings, BTW, even the little holdout in the middle.
I don't recall the two buildings ever coming under the same ownership. In fact, I imagine minus a joint venture, which I also don't recall reading any news about, the two would be quite belligerent in selling to the other considering the value of the real estate and its air rights.
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click here too see hunser's list of the many supertall skyscrapers of New York City!
These sights may eventually be merged, but a pic from the other thread...
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“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
Taking 417's extant rights and adding them to 405's along with anything from the Stefano place and what was bought from St Patrick's would probably still yield a 700 footer with boutique floorplates and 417 could be saved.
“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
405 Park Avenue Completes Demolition In Midtown East, Manhattan
Quote:
Demolition is complete at 405 Park Avenue, the site of a possible new skyscraper in Midtown East, Manhattan. No architect or details have been revealed for the forthcoming structure, which is being developed by MRP Realty, though the breadth of the plot suggests that it will likely support an office tower yielding several hundred thousand square feet. Titan Industrial SVC Corp. is the demolition contractor for the property, which is located at the corner of Park Avenue and East 54th Street.
The remainder of the 17-story former occupant of the property has been razed since our last update in December, and recent photos show crews clearing away the final portion of the ground floor along East 54th Street. Large piles of debris from the demolition cover the site and will need to be hauled away before excavation can begin.
The property is located directly to the south of 417 Park Avenue, which has been cleared since last summer and will give rise to a 220,000-square-foot office tower developed by GDS Development (GDSNY) and Klövern AB, which acquired the property for $184 million. This structure will feature a floor area ratio of 25 under the Midtown East Rezoning regulations. The property is currently occupied by dumpsters being used to haul away debris.
MRP Realty originally filed permits to renovate and expand the former 17-story occupant of the plot with air rights purchased from St. Patrick’s Cathedral. These air rights will still likely be used in the new ground-up development.
405 and 417 Park Avenues are located in close proximity to a number of subways including the E and M trains at the Fifth Avenue-53rd Street and Lexington Avenue-53rd Street stations, as well as the 6 train at the 51st Street station.
No construction timeline has been announced for 405 Park Avenue.
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