GDS in talks to buy Midtown East co-op for $200M in office-conversion play

Sale of building would average $7M per apartment

New York /
Jun.June 04, 2019 08:30 AM
GDS Development's Michael Kirchmann and Alan Rudikoff with 417 Park Avenue (Credit: Google Maps)

GDS Development’s Michael Kirchmann and Alan Rudikoff with 417 Park Avenue (Credit: Google Maps)

Another new office project could soon be coming to rezoned Midtown East.

GDS Development is in talks to acquire the 100-plus-year-old co-op building at 417 Park Avenue for about $200 million, Crain’s reported, citing several sources. The proceeds from a sale of the 28-unit building would come out to about $7 million per apartment.

CBRE has been marketing the 13-story property at the corner of East 55th Street for several months.

Under the rezoning, GDS would be able to build a nearly 220,000-square-foot office building on the site, or more if the firm picks up neighboring properties as well. GDS did not respond to Crain’s request for comment.

In total, the 2017 rezoning is expected to add 6.5 million square feet of new office space in the area over the next two decades, and has inspired JPMorgan Chase to demolish its headquarters at 270 Park Avenue to replace it with a larger tower.

Three blocks south of the co-op, Vornado Realty Trust and Rudin Management are considering a potential 1,450-foot tower at 350 Park Avenue. The developers own adjacent buildings at the site which would both be demolished for the project — though they may decide to redevelop their properties independently instead.

Elsewhere in Manhattan, GDS is currently planning a 12-story, 105,000-square foot office building at 322 Seventh Avenue in Chelsea. The firm is also developing a 22-story, 141,000-square foot office building in NoMad. [Crain’s] — Kevin Sun

 

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