NEW YORK | 175 Park Avenue (Grand Hyatt) | 1,581 FT | 92 FLOORS

[NYguy]

We’ll see how this goes ( I’m speaking about the thread, though we’ll be watching for any tenant news as well)…


https://therealdeal.com/new-york/2025/09/02/sl-green-eyes-brooks-brothers-site-for-office-project/

RXR and TF Cornerstone are planning to lock in an anchor tenant by year’s end for their planned tower at 175 Park Avenue.

[ssh]

Doubt this is new information, probably just reiterating what Rechler said earlier in the year.

[NYguy]

Originally Posted by ssh

Doubt this is new information, probably just reiterating what Rechler said earlier in the year.

Maybe it is, and maybe it isn’t. I’ll take it for what it is until something concrete says otherwise. These things often drag out.

[ajbeaver25]

If they do manage to get an anchor tenant, do you think they could meet their original 2030 construction deadline?

[NYguy]

Originally Posted by ajbeaver25

If they do manage to get an anchor tenant, do you think they could meet their original 2030 construction deadline?

No. There is still the matter of finalizing financing, filing for demo and construction, etc. Even if they relied on the government loan, the estimatede closing on that has already been pushed back a year.

[NYguy]

As of this month, application for direct federal loan still incomplete...

[NYguy]

https://therealdeal.com/magazine/october-2025/tales-from-new-yorks-cautious-office-comeback/


By Keith Larsen
Oct 1, 2025

Aby Rosen’s RFR Holdings put about $30 million into the Seagram Building, considered the Rolls-Royce of buildings when it was built in the late ’50s. It’s now fully occupied, averaging leases in the mid-$200s per square foot. Some tenants at Seagram are making forward commitments for 2027 and 2028, son Gaby Rosen noted, because of concerns about finding space in the area.

“Even though the overall market availability rate is still relatively very high, there is a lack of supply of big block space,” Gaby Rosen of RFR said. “And there happen to be 30 to 40 tenants right now in the market looking for big block space in and around Grand Central and Midtown East.”

Well, the fish need to bite.

[ssh]

Meant to put this in the 625 Madison thread I'm guessing?

[NYguy]

Originally Posted by ssh

Meant to put this in the 625 Madison thread I'm guessing?

NO.

“Even though the overall market availability rate is still relatively very high, there is a lack of supply of big block space,” Gaby Rosen of RFR said. “And there happen to be 30 to 40 tenants right now in the market looking for big block space in and around Grand Central and Midtown East.”

This building needs tenants, and is in the Grand Central market. If there are that many tenants in need, they need to start biting. Not all of those tenants will be looking for top of the market space such as this, but enough of them are. And the pickings are slim. That's why I said some of them need to start biting. RXR isn't going to come down on rents.

[ssh]

Originally Posted by NYguy

There is still speculation that an office tower might rise here, but so far, filings for the residential tower continue.

Meant this part.

30-40 potential large tenants in the market + rates coming down seems like the perfect opportunity to finally break ground on this tower.

[DCReid]

Originally Posted by ssh

Meant this part.

30-40 potential large tenants in the market + rates coming down seems like the perfect opportunity to finally break ground on this tower.

And especially for financial companies, which are doing quite well. I wonder how much preleasing this tower needs to move forward? At least 500K?

[NYguy]

Originally Posted by ssh

Meant this part.

30-40 potential large tenants in the market + rates coming down seems like the perfect opportunity to finally break ground on this tower.

THAT was.

Originally Posted by DCReid

And especially for financial companies, which are doing quite well. I wonder how much preleasing this tower needs to move forward? At least 500K?

I think it was somewhere around 400K. And that's in addition to the already planned Hyatt hotel.


I see a NEW red flag being added to the lack of available space. And that is the growing number of conversions in Midtown East, and particularly in the Grand Central area. The Midtown East rezoning was focused on needed office development, which is why no more than 20% of a new building's floor area could be residential. But with the changes from City of Yes, and other financial incentives, lots of the projected development sites are simply converting to residential, something quicker and cheaper to do. Now, that in itself is good for the area, as it brings in new life. But it undercuts efforts to bring modern office space into the area. And the effect is compounded by the fact that the Midtown East rezoning wasn't a blanket rezoning, but decreases in density the further away from Grand Central you move, and many of the highest density sites are landmarked. (That's why a tower like 270 Park is built to a 23 FAR, while One Vanderbilt gets a higher density 30 FAR). It might not seem like a big problem now, with a few new towers looking for tenants, but in the long term, it will be a problem.

[NYguy]

You can see why the expected loan permitting was pushed back to 2026. The federal environmental review won't be complete until May...


https://www.permits.performance.gov/permitting-project/dot-projects/175-park-avenue

















https://175parkproject.nyc/

[NYguy]

Another look...

[BanBrokenChatBots]

This is the big one the city's been waiting for, by the time the environmental review is done next May 350 Park avenue will be starting demolition. So this will be about a year behind if everything works out with the review and funding.

[Doubleu1117]

The transit improvements look great. Really helps to tidy that 42nd/ Grand Central spider web

[NYguy]

Originally Posted by BanBrokenChatBots

This is the big one the city's been waiting for, by the time the environmental review is done next May 350 Park avenue will be starting demolition. So this will be about a year behind if everything works out with the review and funding.

Originally Posted by Doubleu1117

The transit improvements look great. Really helps to tidy that 42nd/ Grand Central spider web

It's good to at least see things are active on the financing front, even as they still look for a tenant. The federal loan should wrap up sometime by the summer, so I would expect the hotel to close sometime next year. Demo and construction on this tower would begin at the same time, due to the nature of the project.

[The New York Lion]

Rumor on YIMBY that we have a tenant that will be announced soon and construction will start by year end.

[NYguy]

Originally Posted by The New York Lion

Rumor on YIMBY that we have a tenant that will be announced soon and construction will start by year end.

A tenant can be announced tomorrow, and they wouldn't start construction by year's end. A lot has to be put in motion and approved by the DOB. However, it wouldn't shock me if they have a tenant already. At least we know financing is progressing either way.

[NYguy]

More talk of a tenant…

https://www.linkedin.com/posts/billmonta...womens-activity-7383937457173499905-hYo8