NEW YORK | 45 East 45th St (Roosevelt Hotel) | FT | FLOORS

[NYguy]

Originally Posted by ssh

SL Green know the One Vanderbilt formula works, so they obviously won't stray away from it. Expect taller than 1,401'.

I don't know why you would expect it to be taller than One Vanderbilt if SL Green is the developer. It's zoned for a tower of the same size, and if SL Green builds, it would likely be an office tower.




https://www.nytimes.com/2025/02/24/nyregion/roosevelt-hotel-migrant-shelter-closing.html

Manhattan Hotel Shelter That Became Symbol of Migrant Crisis Will Close


By Luis Ferré-Sadurní
Feb. 24, 2025

Vijay Dandapani, the leader of the Hotel Association of New York City, a trade group, said he was unaware of Pakistan’s plans for the hotel, but that it was possible it could “be acquired by a large real estate firm to redevelop as a mixed-use tower.”

[NYguy]

https://therealdeal.com/new-york/2025/02/25/new-york-city-to-shutter-migrant-shelter-pose-redev/


Shuttering Midtown migrant shelter could welcome massive development site
Roosevelt Hotel primed for redevelopment after closure in coming months


Holden Walter-Warner
February 25, 2025

…..The loss of the migrant intake center could lead to a full-block development at 45 East 45th Street, Crain’s reported. A date for the center’s closure isn’t clear, but the city plans to transfer the functions of the facility elsewhere in the next few months.

The century-old, 1,025-key hotel closed in October 2020 at the height of the pandemic. The future of the property seemed cloudy at best; the Hotel Trades Council accused ownership of failing to comply with the city severance payments, while an Australian mining company tried to take ownership of the property as the result of a mineral rights dispute with Pakistan, which owns the hotel through a state-run corporation.

Relief came two years ago when the city opted to lease the hotel from Pakistan for three years and $220 million over the life of the deal. It’s unclear if the city will fulfill its lease obligations if the center closes before the deal is supposed to end.

But Pakistan has been operating on a parallel track since the end of 2023 when it tapped JLL to bring the hotel on the 43,000-square-foot site to market. At the time, the brokerage was planning to solicit developer proposals for a potential teardown.

One candidate to swoop in could be SL Green. Late last year, a JPMorgan analyst said the office landlord was looking for a large-scale development site and the hotel has “essentially been a placeholder for a major office tower for many years.”
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[NYguy]

https://nypost.com/2025/03/02/business/n...in-sale-after-migrants-move-out-sources/

NYC’s Roosevelt Hotel may fetch $1B in sale after migrants move out: sources

By Steve Cuozzo
March 2, 2025

The property’s owner, the Pakistan government’s Pakistan International Airlines (PIA), wants to sell it for what sources said could be $1 billion.

A developer could tear down the antiquated hotel to build a skyscraper of up to 1.8 million square feet on the roughly 42,000 square-foot parcel, sources said. A project so large would need to exploit recent area rezoning which raised maximum FAR (floor-to-area ratio) from 15 to 30, available only if a developer provided transit and public-space improvements and amenities subject to city and MTA review.

PIA’s sale agent, JLL, has yet to issue a formal solicitation, which will likely happen in the spring. However, market sources told Realty Check that “informal conversations of interest” have taken place with developers including Tishman Speyer, Related Companies, SL Green and Vornado.

The Roosevelt site takes up the full block bounded by Madison and Vanderbilt avenues between East 45th and East 46th streets. A new tower would enjoy direct access to Grand Central Terminal. Its skyscraper neighbors would include the nearly finished JP Morgan Chase headquarters and SL Green’s One Vanderbilt

A new tower might combine offices, a hotel and retail. A buyer would need to pay a substantial termination fee to the Hotel Trades Council/Local 6 union even if the project didn’t include a hotel, as per its contract with Roosevelt’s owners.

JLL has represented PIA since early last year, but its role was limited as long as the city’s $220 million Roosevelt lease remained in effect. Now that the city has exercised an option to end the lease with four months’ notice, the hotel site has become the hottest potato in the Manhattan shoot-for-the-sky building scene.

”Any development plan would have a lot of moving parts,” one investment-sale specialist noted “A buyer has to make a deal with the union. Their proposal has to go through ULURP. They need to find an anchor tenant. You’re looking at a three-to-five-year process.”

Reopening the Roosevelt as a hotel short-term wasn’t likely, an industry source said – “It was not in great shape before the migrants came and God knows what it’s like now.”

….. developers are inserting demolition clauses into leases that would allow them to clear buildings to make way for new towers, a sign they’re getting ready.

“I think there are more [projects] that could move into a more active-mode list,” she said.

[NYguy]

https://therealdeal.com/magazine/march-2025/suddenly-developer-wan-build-trophy-offices-again/

Suddenly, developer want to build trophy offices again
Corporate demand is pushing out green shoots in the market





By Rich Bockmann
MAR 3, 2025

There are a handful of prime development sites that could hold Manhattan’s next cloud-busting commercial tower.
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The Pakistani government recently tapped JLL to market the Roosevelt Hotel at 45 East 45th Street, just north of Grand Central Terminal.

Developers might also eye a pair of properties at 405-417 Park Avenue, spanning the full block front on Park between East 54th and 55th streets. The city also identified nearly 40 sites that could sprout new towers when it rezoned Midtown East in 2017.

[NYguy]

PIA’s sale agent, JLL, has yet to issue a formal solicitation, which will likely happen in the spring. However, market sources told Realty Check that “informal conversations of interest” have taken place with developers including Tishman Speyer, Related Companies, SL Green and Vornado.

When this is finalized, we can finally get a sense of where this is headed (obviously a tower, but what kind).

[NYguy]

And I thought people here take too long to make a decision....



https://tribune.com.pk/story/2533600/pia-sell-off-set-for-july-imf-told

the future of Roosevelt Hotel in New York has yet to be decided amidst the US decision to terminate the $228 million worth lease deal prematurely.



Shahbaz Rana
March 11, 2025

.....The global lender has been told that the Cabinet Committee on Privatisation would make a decision whether to sell the priciest Roosevelt Hotel or give it under a joint lease agreement. The hotel, owned by PIA, is located in an area considered among the top 1% of the most expensive properties in the world.

The hotel has 1,025 rooms and Pakistan had given it on a three years' lease to the Immigrant Housing Business by the New York City Government in July 2023.

But the IMF was informed that the New York City government had given a notice to end the deal with effect from July – one year before its expiry. This would cause around $80 million loss of business. The city government had taken the hotel at $210 per room for the third year.

.....despite hiring one after another financial advisor, the government has not yet been able to take a clear decision on the privatisation of the Roosevelt Hotel. Pakistan hired Jones Lang LaSalle Americas as the financial advisor for the Roosevelt privatisation transaction at a cost of Rs2.1 billion. The advisor's fee includes milestone-based payments and a success fee of 0.95% of the sale proceeds.

The IMF was told that the CCOP would soon take a decision on the mode of privatisation of the hotel, based on input by a committee headed by Ali Pervaiz Malik, now federal minister for petroleum.

The committee has recommended privatising the valuable Roosevelt Hotel in New York through open bidding after Saudi Arabia failed to show formal interest in acquiring the PIA-owned property. But the CCOP has not yet taken up the committee report for a decision.

The Privatisation Commission said last year that under a government-to-government arrangement, a foreign government must formally declare its interest before invoking the Inter-Governmental Commercial Transaction Act. As of late December, no foreign government had shown formal interest to acquire the hotel, according to the committee's proceedings.

The special committee has proposed to the CCOP that the hotel be sold via open and competitive bidding. However, the committee also left it to the Privatisation Commission to decide whether to outright sell the hotel, develop it as a joint venture, or lease it for 99 years.

[NYguy]

Getting closer to bidding...


https://thetruthinternational.com/latest-updates/pia-faces-second-privatisation-attempt/

March 19, 2025

Roosevelt Hotel Privatisation Also Under Review

The Privatisation Commission Board also discussed various transaction structures for privatising the Roosevelt Hotel Corporation in New York. A financial advisor briefing will be held before finalising the privatisation strategy.

Last week, the CCOP directed the commission to privatise the Roosevelt Hotel through competitive bidding, leaving open the option of either a full sale or a joint venture. The CCOP emphasised that the commission should carefully assess the transaction structure, considering potential risks and the time required to maximise proceeds.

[ChiND]

It looks like the end is near!

https://www.crainsnewyork.com/politics-policy/roosevelt-hotel-lay-most-its-workers

[NYguy]

Originally Posted by ChiND

It looks like the end is near!

https://www.crainsnewyork.com/politics-policy/roosevelt-hotel-lay-most-its-workers

I don't know what they thought would happen with the closure of the hotel...

Mayor Eric Adams said last month that the hotel would close and stop operating as a shelter for newly arrived migrants in June, after the number of people arriving in the city fell dramatically. But he didn’t say at the time that 96 of the hotel’s 103 employees would lose their jobs.

Representatives for City Hall and the Hotel Trades Council, the union that represents hotel workers, didn’t immediately respond to requests for comment. Requests for comment from the Stewart Hotel, Roosevelt Hotel and DocGo weren’t immediately returned.

Still, this is independent of the government of Pakistan finalizing a plan for how to proceed with the property. That is expected to be done this year, and the site put up for bid.

[ChiND]

[NYguy]

https://www.investing.com/news/transcrip...-q1-2025-beats-eps-forecast-93CH-3991673

Earnings call transcript: SL Green Realty Q1 2025 beats EPS forecast


04/17/2025

Steve Sakwa, Analyst, Evercore ISI:
Thanks. Good afternoon. Mark, I know at the Investor Day and on other calls, you’ve talked about wanting to try and secure a new high quality development site in Midtown. I’m just curious, given kind of what’s going on in the macro and the uncertainty over tariffs and costs, how challenging is that to try and pencil out today? And is that something you’d still be looking at, say, this year? Or maybe that’s something more for next year?

Mark Holliday, Chairman and Chief Executive Officer, SL Green Realty Corp:
I think it’s completely delinked, Steve. These development projects are five to seven year journeys. And when we take a pen and pencil or computer to underwriting, this is not a question of two months ago, we were excited about development and two months later, we’re not. And next month we are. And next month we’re not based on the stock market tariffs.

There is an enormous scarcity of high quality office development sites that can be delivered over the next four or five years. And in a city like New York that is, you know, the pivotal CBD in this country and is growing and, is reaching all sorts of records on employment, on Wall Street profits, on bank earnings. There’s a confidence we have in the long term viability of this market that we would absolutely welcome the prospect of developing a significant new site in core Midtown Manhattan in our market, in SL Green territory. That’s for sure. And that hasn’t changed in my opinion or mind in the past three months.

My pricing it goes back to what I said earlier. On the bond question, might pricing change one way or the other? Maybe. Do I think rents have changed for that product? Absolutely not.

In this building alone at 1 Vanderbilt, we have a constant flow of inquiries for expansion, because we have great tenants here and elsewhere through the portfolio. And notwithstanding, you know, what you’re seeing in market, there’s still companies that are growing and taking advantage of this market and need more space. This isn’t anecdotal. These tenants who are ringing our doorbells and saying, we need to grow. And this isn’t like modest growth.

Some of these requirements are significant. And the issue I have right now is not tariffs. The issue I have right now is delivering 1,500,000 to 2,000,000 square feet of brand new Class A, One Vanderbilt like style office space to the most sophisticated base of tenants in the country that want to grow. And I’m as committed to that today as I was in December.

[ChiND]

This is great news. I hope that 175 Park gets a tenant before anything proposed for this site though.

[ssh]

I would expect a bidding war for this site, but SL Green may be able to get a deal because of..."market conditions"

[Crawford]

SL Green sounds very confident and ready to build:

SL Green Execs Say New York 'Mostly Immune' To Market Volatility

https://www.bisnow.com/new-york/news/off...content=outbound_link_6&utm_medium=email

Holliday said that the company remains eager to build new supply too, citing an “enormous scarcity of high-quality office development sites that can be delivered over the next four or five years.”

“This is not a question of two months ago, we were excited about development, and two months later we're not, and the next month we are, based on the stock market or tariffs,” Holliday said. “New York is the pivotal central business district in this country and is growing, reaching all sorts of records on employment, on Wall Street profits, on bank earnings.”

[NYguy]

The thing about this site is, Pakistan wants to focus on a mixed-use development (office, retail, hotel, residential). SL Green meanwhile, is likely to focus primarily on office. It's good either way, but a fully developed office tower by SL Green is likely to be shorter than a mixed-use tower would be. In fact, it would probably be shorter than One Vanderbiltl

[ChiND]

Originally Posted by NYguy

The thing about this site is, Pakistan wants to focus on a mixed-use development (office, retail, hotel, residential). SL Green meanwhile, is likely to focus primarily on office. It's good either way, but a fully developed office tower by SL Green is likely to be shorter than a mixed-use tower would be. In fact, it would probably be shorter than One Vanderbiltl

I hope that Pakistan goes the mixed-use route because that also won't require a tenant to begin construction.

[NYguy]

Seems we're starting to get somewhere, but they've been talking about this for a long time...


https://www.thenews.com.pk/print/1302914...osevelt-hotel-eyes-sale-or-joint-venture

Pakistan drops lease option for Roosevelt Hotel, eyes sale or joint venture
Previously, financial adviser had proposed three options for the PIA-owned Roosevelt Hotel


By Israr Khan
April 19, 2025

The Privatisation Commission Board on Friday approved the proposed transaction structure for the long-delayed divestment of Roosevelt Hotel in New York, eliminating the leasing option and narrowing its focus to either an outright sale or a joint venture, according to sources familiar with the matter.

The board meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation/Chairman Privatisation Commission, reviewed multiple structuring options submitted by the Financial Advisory Consortium led by Jones Lang LaSalle Americas Inc. (JLL) and finalised its recommendation for submission to the Cabinet Committee on Privatisation (CCOP) for final approval.

Previously, the financial adviser had proposed three options for the PIA-owned Roosevelt Hotel -- an outright sale, joint venture, or a 99-year lease. However, now the board has scrapped the lease option in favour of the other two.

[NYguy]

https://www.bloomberg.com/news/articles/...gets-redevelopment-offer?srnd=phx-wealth

NYC Hotel Dubbed ‘New Ellis Island’ Gets Redevelopment Offer


By Gillian Tan and Patrick Clark
April 28, 2025

Shahal Khan’s Burkhan World Investments and its partners are pitching the owner of the Roosevelt Hotel on a deal to redevelop the midtown Manhattan property, according to a document reviewed by Bloomberg News.

The proposed transaction would be structured as a joint venture, with the property’s current owner keeping a 50% stake in the entity, the document shows. The venture would take a 99-year ground lease on the property, with the option to extend the lease for another 99 years, the document shows.

The Roosevelt Hotel, dubbed “the new Ellis Island” as it processed migrants arriving to New York City in recent years, has had ties to Pakistan’s government for more than four decades, with the current owner being PIA Holding Co., and is located across from Grand Central Terminal, in a booming office corridor.

Burkhan and its partners intend to seek approval to build a new tower on the site that would total about 1.3 million square feet (120,774 square meters), in part through the acquisition of air rights, the document shows.

A representative for Burkhan said the proposed transaction is the “best deal” for Pakistan’s government because it allows the country to keep the asset and “make a significant return.” They said the proposal has been submitted and the company has yet to receive a response from Pakistan’s government.

[ssh]

I'd prefer it if a name brand like SL Green were to pick this up. Regardless, seems like a guaranteed supertall.

[NYguy]

Originally Posted by ssh

I'd prefer it if a name brand like SL Green were to pick this up. Regardless, seems like a guaranteed supertall.

I’m not so sure you want that. SL Green may be someone you’re more familiar with, but this site will attract bidders from around the world. I would prefer someone with a mixed-use vision, and a desire to leave a mark on the skyline.

Anyway, here’s their website…
https://burkhan.world/home-1