Grand Central owner threatens $1B suit over One Vanderbilt

Argent Ventures says city seized its air rights in rezoning that allowed tower's go-ahead

TRD New York /
Jul.July 17, 2014 11:50 AM

Lawyers for Grand Central Terminal’s landlord have threatened to sue the city for $1 billion over an air-rights dispute related to the construction of SL Green’s One Vanderbilt.

At a City Planning meeting on Wednesday, the attorneys claimed that the city unconstitutionally seized the property of Argent Ventures, the railroad station’s landlord, when it proposed the rezoning of a five-block area adjacent to Grand Central known as the Vanderbilt Corridor, the Commercial Observer reported. Under the plan, SL Green would not be required to purchase any of Argent’s 1.3 million square feet of air rights, which include the parcels on which SL Green’s 1.8-million-square-foot One Vanderbilt tower would rise.

“The development rights above Grand Central are property rights, and the Constitution protects those rights from being taken from their owners without just compensation,” said Argent’s attorney Duane Loft of Boies, Schiller & Flexner at the meeting, the news site reported.

SL Green secured the right to build 672 feet over current zoning scale without purchasing Argent’s rights by reaching a deal with the city to build public space and fund transit improvements, according to the news site.

City Planning spokesperson Rachaele Raynoff told The Real Deal in an email the arrangement “does not preclude the ability of the owner of Grand Central’s transferable development rights to sell them.” She added that the ability to sell would be expanded under the framework by allowing nearby sites to absorb more floor area ratio in development rights from Grand Central than they currently can.

Argent’s president and founder, Andrew Penson, locked horns with the city last year over the valuation of air rights in the area. [NYO]Tom DiChristopher


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
From left: SL Green CEO Marc Holliday, Ceruzzi Properties’ Arthur Hooper, the Lipstick Building at 885 Third Avenue and IRSA president Eduardo Elsztain (Getty, Wikipedia, Google Maps)

Lipstick Building ground rent reset leads to appraisal dispute

Lipstick Building ground rent reset leads to appraisal dispute
From left: Empire State Building, One Vanderbilt and 220 Central Park South

REITs: A crystal ball for NYC’s commercial real estate

REITs: A crystal ball for NYC’s commercial real estate
Isaac Zion

SL Green’s co-CIO leaving firm

SL Green’s co-CIO leaving firm
SL Green CEO Marc Holliday, One Madison Avenue and Hines Group CEO Jeffrey Hines (SL Green; Hines via Sanjeev Verma/Hindustan Times via Getty Images)

SL Green sells half of One Madison to Hines, NPS of Korea

SL Green sells half of One Madison to Hines, NPS of Korea
SL Green CEO Marc Holliday and CFO Matthew DiLiberto (Credit: SL Green)

SL Green preparing $1B coronavirus cushion

SL Green preparing $1B coronavirus cushion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...