NEW YORK | 175 Park Avenue (Grand Hyatt) | 1,575 FT | 86 FLOORS

[NYguy]

A little more on the Blackstone lease expansion…


https://commercialobserver.com/2024/...5-park-avenue/

The private equity company is finalizing a deal that would expand its headquarters to 1.06 million square feet. Once completed, the deal would keep Blackstone in Rudin’s Midtown office tower for the next 10 years.

“We are expanding our commitment to our New York-based workforce, Midtown Manhattan and New York City with this extension,” a Blackstone spokesperson told Commercial Observer via email. “The Rudin organization continues to be a wonderful long-term partner to our firm. We are excited that 345 Park Avenue will remain our global headquarters.”

With the impending expansion, Blackstone’s already dominant presence in Rudin’s 1.9 million-square-foot tower would increase from 42 to 55 percent, with offices across 28 of the total 44 floors. Such a hold would rank the Blackstone deal as New York City’s largest commercial office lease since 2022, and the fourth-largest lease deal since 2019, according to CoStar.

“For over 30 years, Blackstone has proudly maintained its global headquarters at 345 Park Avenue, and we look forward to continuing this strong partnership,” a spokesperson for Rudin told Commercial Observer via email. “The decision of a premier financial services firm such as Blackstone to extend and expand its footprint is a testament to the long-term resiliency of New York City.”

[Ahoi]

https://i.redd.it/175-park-avenue-ny...=webp&5970e233

[ChiND]

That they plans to anchor a new tower is crystal clear since they only extended by six years (for a total of ten years left) and because they expressly said so. Hopefully, they’ll anchor 175 Park. It seems that it would take ten years to finalize a deal with RXR, demolish the hotel, and build the new tower.

https://therealdeal.com/new-york/202...dins-345-park/

[Crawford]

Yeah, major office leases are almost always 10-year terms. The six-year extension is a pretty clear hint they're planning something down the road.

[NYguy]

Another point on Blackstone, if they want to consolidate into a single tower, they will need a considerable amount of space.


https://www.globest.com/2024/06/14/b...n-hq-to-1m-sf/

Blackstone, which has grown its workforce to more than 4,700 employees, will have an overall Manhattan office footprint of close to 1.4M SF with the new deal at 345 Park Avenue. The firm also occupies 330K SF at 601 Lexington Avenue, where it added 200K SF in one of the largest leases of 2022.

“We are expanding our commitment to our New York-based workforce, midtown Manhattan and New York City with this extension,” a Blackstone spokesperson said in statement emailed to Bloomberg.

Down the street from Blackstone’s Park Avenue HQ, a supertall under construction at 270 Park Avenue will be the new headquarters of JPMorgan Chase when it is completed next year.

[ChiND]

Will 175 Park and The Roosevelt tower have the same size floor plates? If so, will they be roughly the size of 1 Vandy’s?

I’m guessing that any tenant that wants huge floor plates would have to go to the HY.

[TKD]

No, this lot's area is over 13,000 sqft larger than the One Vanderbilt or Roosevelt lots (which NYguy and others have mentioned several times that those lots are the same size and have the same zoning.).

[ChiND]

Thanks.

[NYguy]

https://www.costar.com/article/16132...york-city-home

…With this expansion, Blackstone, which also has a footprint nearby at 601 Lexington Ave. between East 53rd and 54th streets, becomes New York’s seventh-largest commercial office tenant, occupying a total of 1.4 million square feet…

Blackstone’s decision to stay put in midtown Manhattan is another example that Park Avenue, hard hit during the onset of the pandemic because of its predominantly office-centric nature, has proved naysayers wrong. It has shown solid demand despite what’s often pitched as the live-work-play appeal of neighborhoods such as midtown South, Lower Manhattan and Hudson Yards that have led some major firms to depart midtown Manhattan.

… Park Avenue Projects

In another validation for Park Avenue and the Plaza District, the largest U.S. office cluster, billionaire investor Ken Griffin, founder of hedge fund Citadel, is moving forward with a plan to build a 1.8 million-square-foot office tower a few steps away at 350 Park Ave. with Rudin and developer Vornado Realty Trust.

JPMorgan Chase also is building its 1,388-foot, 60-story global headquarters at 270 Park Ave. while developer RXR plans to co-develop 175 Park Ave., a project billed as a nearly 1,600-foot-tall tower with the highest occupied office floor and the highest hotel in the Western Hemisphere.

https://www.leadersmag.com/issues/20...chler_RXR.html

…We have over 30 million square feet of commercial properties and over 9,400 units of multifamily. We are currently designing/developing over 4 million square feet of commercial space including 175 Park Avenue, which will be a 2.3 million square feet office building with a 200 key hotel connected to Grand Central Station. It will have the highest occupied space in the Western Hemisphere with the hotel starting at over 1,200 feet up in the air.

[Zapatan]

That hotel is going to be sick.


The article is wrong though, Sears Tower has a higher office floor and Central Park Tower has a slightly higher occupied floor overall.


Still insane though. This thing can't get going soon enough.

[NYguy]

Originally Posted by Zapatan

That hotel is going to be sick.


The article is wrong though, Sears Tower has a higher office floor and Central Park Tower has a slightly higher occupied floor overall.


Still insane though. This thing can't get going soon enough.

We don't know what the highest occupied office floor is yet. They could designate a single floor at the top that could fall within that designation. We don't really know what the final occupied height will be at this tower.

the highest occupied office floor and the highest hotel

It will have the highest occupied space in the Western Hemisphere with the hotel starting at over 1,200 feet up in the air.

[ChiND]

Considering all of the demand for the GCT area, I hope that RXR finds a tenant soon.

https://www.bloomberg.com/news/artic...-checkout=true

Hedge Fund Elliott in Talks to Move NYC Offices to Park Avenue

Firm would consolidate its Manhattan workforce in new spot
Elliott relocated its headquarters to Florida in the pandemic


By Natalie Wong, Allison McNeely, and Hema Parmar
June 27, 2024 at 12:24 PM EDT

[NYguy]

[ChiND]

I had been dying for news about this and Citadel’s new tower. Ken G delivered big time. I hope that RXR does too.

[NYguy]

https://urbanland.uli.org/developmen...one-vanderbilt

One Vanderbilt
Supertall creates a “palpable energy” that speaks to New York’s resilience and the future of cities

By Sibley Fleming
July 8, 2024

Opened in 2020 in the midst of the pandemic, SL Green’s $3.3 billion One Vanderbilt office tower—the fourth tallest in New York City—serves as a prime example of what the future of cities could hold. After achieving $300 per square foot—the highest rent in the city—the supertall is 99 percent leased, with a weighted average lease term of 15 years.

One Vanderbilt is the tower RXR wants to model 175 after, and I’m sure they will justify the rents. The area needs more modern office towers.

[BrickellBased]

Sometimes it's about more than just dollar and cents and it takes one breakthrough to lead the way and show the rest what is possible.

Originally Posted by NYguy

Opened in 2020 in the midst of the pandemic, SL Green’s $3.3 billion One Vanderbilt office tower—the fourth tallest in New York City—serves as a prime example of what the future of cities could hold. After achieving $300 per square foot—the highest rent in the city—the supertall is 99 percent leased, with a weighted average lease term of 15 year

[NYguy]

^ In that case, we look to 425 Park, which also set rental records. The difference between that one and Vanderbilt & 175 is a direct connection to Grand Central. (425 is in what is sometimes called the Plaza district, another expensive sector).

[NYguy]

This building (the Hyatt) looks dead already, though there are customers still in and out, and there are a couple of small retail outlets on 42nd. But the AC coming out is heavenly.



JULY 28, 2024

[ChiND]

Blackstone is the perfect anchor. Their ten-year lease extension has perfect timing for this tower. If demolition started in January 2025, it will probably be ready for occupancy by the end of 2024.

Morgan Stanley also is a good candidate. Unless RXR is seeking insane rents for the lowest floors, I don’t see how they won’t have an anchor soon.

[NYguy]

I think the hotel would stay open through the end of the year, even if an anchor tenant were signed before then. But foundation work and demolition work would commence at the same time. So there would be no time wasted whenever work does begin on this tower.