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

[NYguy]

https://commercialobserver.com/2025/01/tf-cornerstones-jake-elghanayan-interview/

TF Cornerstone’s Jake Elghanayan Talks Playing the Long Game in CRE
That includes office


BY MARK HALLUM
JANUARY 21, 2025

What’s the state of 175 Park Avenue?

It feels like we’re in a pretty good position now. I think it’s the best location for an office building in New York. We’ve got a great design, a great team with SOM and RXR, and I think the trophy market in general has rebounded for a few years now. But there was enough of an uncertainty overhang from remote work that I think people had a harder time making the long-term, forward-looking commitments that you need to start a new building.

We’ve seen that that overhang about remote work has mostly gone. I don’t think people are uncertain about how much office occupancy they’ll have in the future, as much as they might have had in the last few years. Plus all the new space has been absorbed — everything that started pre-pandemic. So we’re pretty bullish that this is going to be a good year for 175 Park.

It’s been a long story in the making. We bought the Grand Central Terminal air rights back in 2016, and made a relatively quick deal when J.P. Morgan wanted air rights for their headquarters — we sold off about half right there. Hyatt had been our first call from the beginning; we thought that that was really a great place to land the air rights and to build a big tower to replace the hotel.

We went through a long zoning process that was actually pretty productive, led to improvements in the design in certain ways, and also created public benefits that’ll be within the building. Then we spent the next year basically drawing and working out the development plans in earnest so that the building was ready to go. We really started our leasing efforts in earnest in the back half of `23. But it hadn’t been the best environment because people were saying, “Well, I don’t know. Do I need a million square feet or 500,000 square feet?” They didn’t know how to peg their future needs.

But I think now we’re seeing much more of that uncertainty falling away, and people want the newest, best, well-located space near mass transit.

[ssh]

Based on his almost unsure and pessimistic dialogue, it does not seem that demolition will begin this year. Sounds like another year of nothing from this project. I fully anticipate 350 Park Avenue being further along than this by year's end.

[NYguy]

No more presidential talk until he says or does something directly related to this tower. Have some composure.

[ChiND]

It’s hard to have composure about this landmark!

[HyperPower]

Originally Posted by ChiND

It’s hard to have composure about this landmark!

This will be the most iconic skyscraper built in the United States since One World trade Center & Sears Tower
One Vandy & 270 are nice but not this nice.. 👍

[ChiND]

I agree. MBS should start his $600B US investment here.

https://www.cbsnews.com/news/saudi-arabia-600-billion-us-next-4-years-mohammed-bin-salman-trump/


"Saudi Arabia plans to invest $600 billion in U.S. over next 4 years, crown prince says in call with Trump."
January 23, 2025 / 7:54 AM EST / AP

[chris08876]

Originally Posted by ChiND

I agree. MBS should start his $600B US investment here.

https://www.cbsnews.com/news/saudi-arabia-600-billion-us-next-4-years-mohammed-bin-salman-trump/


"Saudi Arabia plans to invest $600 billion in U.S. over next 4 years, crown prince says in call with Trump."
January 23, 2025 / 7:54 AM EST / AP

Was reading that recently too.

I wonder how much of that 600 billion is allocated to real estate. I'm hoping it'll usher much needed skyscraper construction and housing.

[ChiND]

Originally Posted by chris08876

Was reading that recently too.

I wonder how much of that 600 billion is allocated to real estate. I'm hoping it'll usher much needed skyscraper construction and housing.

I agree, Chris!

[chris08876]

If MBS is seeking diversification, his ROI is going to really shine in our region. NY needs to be the forefront.

Even the Roosevelt parcel. Tallest residential tower in the U.S. would be something for the Saudis to boast about.

[ChiND]

Originally Posted by chris08876

If MBS is seeking diversification, his ROI is going to really shine in our region. NY needs to be the forefront.

Even the Roosevelt parcel. Tallest residential tower in the U.S. would be something for the Saudis to boast about.

I agree, Chris!

[ChiND]

Blackstone is the perfect candidate for this tower. It is unmistakable that after their ten-year lease expires at 345 Park, they will anchor a new tower. If construction starts soon, it should be ready to move in in about 8 years.


https://therealdeal.com/national/2025/01...more-after-proclaiming-historic-quarter/

https://www.reuters.com/business/finance...omentum-aum-hits-record-high-2025-01-30/

Blackstone's profit surges as dealmaking rebounds, execs signal CRE recovery
By Manya Saini
January 30, 202511:41 AM EST

Here's a good report by one of the "Money Honnies," Diana Olick.

https://www.msn.com/en-us/money/companie...id=579ba403e53648c1b4067928a5f4d024&ei=9

New York City office demand is finally back to normal
Story by Diana Olick

[ChiND]

175 Park is mentioned in this article dated January 30, 2025 about RXR’s project in Glen Cove.

https://www.longislandpress.com/2025/01/30/garvies-point/

“It’s also building 175 Park Avenue, which is expected to rise 1,575 feet and encompass over 2.8 million square feet, making it one of the tallest office buildings in the Western Hemisphere.

Located adjacent to Grand Central Terminal at 42nd Street and Lexington Avenue, the building is planned to be directly connected to four different subway lines, the LIRR and Metro-North commuter rail lines, and several bus lines.”

[NYguy]

[SkyHigher]

As long as they build the meat curtain base and perhaps just have a roof top garden or something. Anything like that instead of a soulless HY blue box.

[HyperPower]

It's BlackRock, Inc, no space... but they just increased their lease by 50,000 sqft last year on their initial 20-year lease over at 50 Hudson Yards. As the largest asset management company in the world they have deep pockets.

Anything's possible and most think 175 Park Ave is more lucrative than Hudson Yards for commuting. But surely BlackStone needs to refurbished or move to gain a larger presence with higher floor plates.

Somebody will sign this location is just money.

[ChiND]

Stock Picking in Commercial Real Estate: Scott Rechler Places His Bets

Travis Barrington
Feb. 26, 2025


RXR and TF CornerStone plan to build 175 Park Avenue, a 1,575-foot skyscraper that would be the tallest in the U.S. If they can secure the $6.5 billion in financing. (Image: RXR)

https://propmodo.com/stock-picking-in-commercial-real-estate-scott-rechler-places-his-bets/

[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

RXR and TF Cornerstone are expecting that their 175 Park Avenue — the heir apparent to SL Green’s One Vanderbilt — will land an anchor tenant and break ground this year.

… SL Green sold a stake in One Vanderbilt last year that valued the tower at $4.7 billion, making it the most valuable office tower in the country and the epitome of the successful 21st-century office tower.
If anything can outdo it this cycle, it’ll be the tower next door.

Scott Rechler’s RXR and TF Cornerstone have plans to erect a 2 million-square-foot office and hotel at 175 Park Avenue.

Rechler is confident. By the end of 2025, he said, he’ll not only have an anchor tenant but will also be starting construction.

“I think we’ll be breaking ground,” he said.

[ChiND]

I hope so. This tower is tailor-made for Blackstone or Morgan Stanley.

[ssh]

Amazing news considering RFR and TF Cornerstone lean towards "underpromise, over deliver."

[NYguy]

https://commercialobserver.com/2025/03/midtown-class-a-office-post-covid-leasing/

Midtown’s Class A Office Drought Ups the Stakes Even More
The submarket is doing so well that more developers are considering spec projects

BY PATRICK SISSON
MARCH 4, 2025

Midtown Manhattan’s whiplash-inducing turnaround — from a zombie district during the height of COVID to an in-demand submarket desperate for Class A real estate — has created a squeeze for trophy offices that will shape the market for years to come.

And there’s little relief in sight. Only a handful of new office towers are on the horizon, with much of the space in those already taken.

Year-over-year data suggests, too, that demand for limited amounts of high-end space, like One Vanderbilt or Hudson Yards, has spiked rents, making Midtown Manhattan one of the world’s most valuable office markets.

That demand, and the dearth of new office space expected to come online over the next few years, means Midtown tenants, and potential tenants, should be thinking years ahead if they want to find a home in this increasingly constrained market, said JLL (JLL) Vice Chairman Daniel Posy.

The only sizable Class A buildings in the pipeline are J.P. Morgan’s new headquarters at 270 Park Avenue, which the bank has dibs on; Extell’s 29-story 570 Fifth Avenue, which recently started construction and is due to include an Ikea store amid its office space; and RXR and TF Cornerstone’s early-stages bid to build a supertall at 175 Park Avenue in anticipation of demand. Taken together, these will not be enough to satiate firms shopping for new space. The pressure to renew, and raise rents, will be strong, with law and finance firms likely looking to pay for long-term leases. Fintech firm iCapital signed a long-term renewal at One Grand Central Plaza last month, while law firm Mayer Brown just inked a renewal at 1221 Avenue of the Americas in February for 331,00 square feet, a big expansion.

“The fact that there’s so little new construction coming, and what is still under construction is already leased, is definitely of concern to the market,” said Alison Baumann, CompStak’s senior director of real estate intelligence.