Owners of 405 Park buying 30K sf of air rights from St. Patrick’s

Purchase is the second deal to take advantage of Midtown East rezoning

New York /
Mar.March 01, 2018 04:10 PM

405 Park Avenue

The owners of 405 Park Avenue are buying 30,000 square feet of air rights from St. Patrick’s Cathedral for about $10 million, the second deal under the city’s Midtown East rezoning.

MRP Realty and Deutsche Bank Asset Management teamed up to buy 405 Park Avenue in 2016 for $240 million and now plan to add four floors and 205,000 square feet of office space to the building with the air rights purchase, according to Crain’s.

Rents at the new offices are expected to go for more than $100 per square foot. The building now stands 17 stories tall, and the companies are also planning a gut renovation of the property, making improvements to the façade and the lobby.

St. Patrick’s should make at least $7.2 million in the deal, while the rest of the money will go toward a fund to make public improvements to Midtown East, per the requirements of the rezoning.

JPMorgan was the first company to make plans under the Midtown East rezoning, recently announcing that it will tear down its 270 Park Avenue headquarters and build a 2.5 million-square-foot tower in its place.

Other buildings that may take advantage of the rezoning include the Pfizer headquarters at 219 and 235 East 42nd Street, the MTA headquarters at 341-347 Madison Avenue, the W Hotel at 541 Lexington Avenue, the 14-story office building at 300 Park Avenue and the Roosevelt Hotel at 45 East 45th Street. [Crain’s]Eddie Small


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Mayor Bill de Blasio (Getty)
City expands free legal services for tenants, fearing eviction rush
City expands free legal services for tenants, fearing eviction rush
National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
National chains paid 93% of rent in April
National chains paid 93% of rent in April
Tribeca Associates managing partner Mark Gordon. (Moxy, LinkedIn via Gordon)
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
Governors Island (Getty, iStock)
Governors Island rezoning inches closer to final vote
Governors Island rezoning inches closer to final vote
(RIPCO, iStock)
Target, Five Below, Smashburger open in new Brooklyn shopping center
Target, Five Below, Smashburger open in new Brooklyn shopping center
arrow_forward_ios

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

Loading...