NEW YORK | 405-417 Park Avenue | FT | FLOORS

[NYguy]

Still not clear what will rise on these two lots. Residential or office?



OCTOBER 8, 2023


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[NYguy]

Still not clear what will rise on these two lots. Residential or office?



OCTOBER 8, 2023


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[ChiND]

Hopefully, this boutique tower will be built on spec. in light of the strong demand.

https://nypost.com/2024/05/05/business/park-avenue-vacancy-rate-lower-than-before-pandemic/

[ChiND]

[QUOTE=NYguy;10058602]Still not clear what will rise on these two lots. Residential or office? [QUOTE]

Do you think that this might be a condo/hotel? I assumed that they’d want to build an office due to the zoning. Personally, I’d rather see a hotel/condo.

[NYguy]

The zoning is heavily in favor of office, if they want to use Midtown East zoning and build to the full FAR. But we’ve seen smaller towers, such as 415 Madison, planned.

Residential space can be no more than 20% of a development under current zoning.



MAY 4, 2024

[NYguy]

https://therealdeal.com/magazine/march-2025/suddenly-developers-want-to-build-trophy-offices-again/

March 3, 2025

…..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]

Originally Posted by NYguy

https://www.crainsnewyork.com/real-estate/deal-works-new-park-avenue-tower

Deal in works for new Park Avenue tower


GDS Development, a builder with several commercial projects underway in the city, is negotiating to purchase an over 100-year old residential co-op building at 417 Park Ave. on the corner of East 55th Street for around $200 million, several sources with knowledge of the deal said.

If completed, the firm could erect a nearly 220,000 square foot boutique office building on the site under the rezoning plan, or an even larger structure if it is able to purchase neighboring properties to enlarge its footprint.


June 3, 2019
DANIEL GEIGER

https://commercialobserver.com/2025/03/gdsny-michael-kirchmann-office/

GDSNY’s Michael Kirchmann On NYC Ground-Up Development, Office Renovations


By Amanda Schiavo
March 10, 2025

What is the Park Avenue project?

The Park Avenue property is a little sensitive. I can’t say too much about that project right now, other than what’s publicly available, which is we own, along with Corem, the site that’s on the north half of that block. That’s going to be an exciting ground-up project.

Does GDSNY focus more on building from the group up or on redevelopment?

We are very good at building from the ground up. There’s not a lot of firms in the city that still do that, because it’s very complicated and very difficult to do. There’s probably only five ground-up developers in the city. So ground up is definitely something that we love to do, but New York City doesn’t have a lot of vacant land, so it’s a slightly difficult thing to actually pull off. But a lot of the stuff that we have done and continue to do will be ground up, including Park Avenue.

[ChiND]

I wonder if the two lots will be combined. He refers just to the north lot, but he also claims that it’s “sensitive.”

[ssh]

All this cryptic language just for it to be a 400' glass box would be funny.

[Crawford]

Originally Posted by ChiND

I wonder if the two lots will be combined. He refers just to the north lot, but he also claims that it’s “sensitive.”

I'm pretty sure it's a single lot. If you walk by now, the lots are combined.

[NYguy]

Originally Posted by ssh

All this cryptic language just for it to be a 400' glass box would be funny.

Originally Posted by Crawford

I'm pretty sure it's a single lot. If you walk by now, the lots are combined.

What he's saying is they don't own the 405 Park Avenue site, which they could be in the process of trying to assemble. That would give them the full Park Avenue frontage.


They're saying they can build a quarter million sf on the lot that they own (about 350,000 with the new zoning). As an office building, it would have small floorplates. As residential, it could be a decent sized tower, but only 20 % can be residential to get the max FAR. But a well designed tower does not equate height. So we shall see what we get. We only have to wait.









They would need lot 1 to get the full block front.

[ChiND]

Originally Posted by Crawford

I'm pretty sure it's a single lot. If you walk by now, the lots are combined.

I agree. I’ve seen it. The last time I checked on ACRIS though, I didn’t see any change of ownership. The developer’s comments reiterate that, though I suspect that they’re trying to get the full block front.

[NYguy]

https://nypost.com/2025/10/21/real-estate/why-new-nyc-office-towers-are-breaking-ground/

By Lois Weiss
Oct. 21, 2025

One Vanderbilt’s developer, SL Green, swooped in to pay $136 million for the 800,000-square-foot development site at 346 Madison, where buildings will need to be demolished to kick off construction.

It’s a bargain compared to the entirely vacant 405-417 Park Ave. blockfront between East 54th and 55th streets being marketed by Newmark — with pricing around $500 million — for a potential tower of 700,000 square feet.

Bob Knakal of BKREA is marketing dozens of land sites in Manhattan as well as 17 air rights transfers.

While many of those sites will become condos, some may become offices.

Although 30 million square feet worth of new towers were built over the last decade, it’s nearly all leased up. Jonathan Mazur of Newmark predicts 10 million square feet will rise by 2032 to meet demand — followed by more during that decade.

[NYguy]

Looks like these sites are finally merged....


https://nypost.com/2025/10/21/real-estate/why-new-nyc-office-towers-are-breaking-ground/

By Lois Weiss
Oct. 21, 2025

One Vanderbilt’s developer, SL Green, swooped in to pay $136 million for the 800,000-square-foot development site at 346 Madison, where buildings will need to be demolished to kick off construction.

It’s a bargain compared to the entirely vacant 405-417 Park Ave. blockfront between East 54th and 55th streets being marketed by Newmark — with pricing around $500 million — for a potential tower of 700,000 square feet.

Bob Knakal of BKREA is marketing dozens of land sites in Manhattan as well as 17 air rights transfers.

While many of those sites will become condos, some may become offices.

Although 30 million square feet worth of new towers were built over the last decade, it’s nearly all leased up. Jonathan Mazur of Newmark predicts 10 million square feet will rise by 2032 to meet demand — followed by more during that decade.

[Crawford]

Great news. Hopefully another landmark tower.

Perhaps a supertall, given the inevitable massive floor heights for financial firms.

[NYguy]

Hopefully something as nice as 425 Park, or better…


Taken last month…

[NYguy]

Word is Extell Development may be taking over here…



https://www.corem.se/en/press-releases/c...-at-417-park-avenue-in-new-york-5266543/

Corem has signed a letter of intent to divest the property at 417 Park Avenue in New York

2025-12-03

Corem Property Group AB (publ) (“Corem”) has signed a letter of intent with a U.S. based real estate developer regarding the divestment of the property 417 Park Avenue in New York.

The property is a vacant land plot on Park Avenue in Manhattan with building rights for approximately 33,000 square meters of office space. The site and its development rights was acquired in 2020, with an additional acquisition in 2021, for a total of approximately SEK 2.5 billion. Closing is expected to take place during the second quarter of 2026.

The sale is expected to have a net income effect of approximately SEK -1 billion. Since the acquisition, the property has been a project property with the intention of developing and constructing the property in-house, and has therefore carried early project costs such as demolition and design costs as well as related capitalized financing costs.

”We are very pleased to have found a strong and experienced buyer for our development property on Park Avenue. This potential transaction aligns well with our established strategy to focus on our core market — strong cities within the Swedish real estate sector. A divestment at this stage unfortunately means that potential project profits cannot be realized by us, and therefore the current book value will not be reached, as we have carried out preparatory work. In addition to further reducing our holdings in the U.S. through this transaction, capital is also being freed up for more efficient allocation,” said Rutger Arnhult, CEO of Corem.

[ChiND]

I hope that Extell does not build another lame, glass box here like it seems to be spreading all over Manhattan.

I assume that the two adjacent sites will be consolidated.

[Crawford]

If it's Extell, they better deliver a landmark quality tower, given the location.

Extell builds nice buildings, but they generally don't build "wow" buildings. The Park Ave. location calls for something conservative and timeless but also lavish.

[ChiND]

I agree, Crawford.

I care more about the design than the height, but a 700k sf tower on this small plot should be at least 800 feet tall. 425 Park is about 675k sf, and it's on a slightly larger plot.


https://nypost.com/2025/10/21/real-e...eaking-ground/

By Lois Weiss
Oct. 21, 2025

...It’s a bargain compared to the entirely vacant 405-417 Park Ave. blockfront between East 54th and 55th streets being marketed by Newmark — with pricing around $500 million — for a potential tower of 700,000 square feet....

P.S.: NY Guy: Could Extell's recent purchase of air rights at St. Thomas Church be used here?