NEW YORK | 250 Park Ave | FT | FLOORS

[NYguy]

https://super.news/en/articles/2024/...0-m-tower-plan

Manhattan's Office Market Faces Test with $350M Tower Plan
AEW Capital aims for $350M in bold bet on office market, selling 1920s building for potential 1M sq ft tower redevelopment.


By Tal Alexander
3/29/24

AEW Capital Management, a subsidiary of the French investment manager Natixis, has made a bold move by putting up for sale the aging office building at 250 Park Avenue, with aspirations of fetching between $300 million to $350 million. This decision comes at a time when the future of office spaces, particularly in Manhattan, is a subject of intense debate.

The building, a relic of the 1920s and currently 76 percent occupied, is being marketed not for its historical value but for its potential to be demolished and replaced with a modern tower nearly 1 million square feet in size. This strategy, as highlighted by Newmark's marketing materials, is designed to capitalize on the Midtown East rezoning bonuses, positioning the property as a prime candidate for redevelopment in anticipation of the next market cycle.

The decision by AEW Capital Management to sell 250 Park Avenue for redevelopment into a modern office tower is a gamble that reflects broader market dynamics. On one hand, it underscores a belief in the continued demand for high-quality office spaces in strategic locations. On the other, it comes at a time when the market is showing signs of softening, with declining rents and shorter lease terms indicating a shift in tenant preferences and priorities.

The juxtaposition of ambitious development projects with the reality of a market adjusting to post-pandemic norms paints a picture of a sector at a crossroads. Investors and developers are navigating a landscape where the traditional value propositions of office real estate are being reevaluated in light of evolving work habits and economic conditions.

[NYguy]

4/10/24

[SkyHigher]

Potential 1M sq ft tower redevelopment? Vandy is 1.7M and is pretty much twice the footprint. Aka yikes this could be one tall tower which may well finally break the 1700ft barrier. Fingers crossed.

[NYguy]

^ Yeah, I believe it could end up taller than 270 Park. Not guaranteed to, but it is a possibility.

[NYguy]

Originally Posted by SkyHigher

Potential 1M sq ft tower redevelopment? Vandy is 1.7M and is pretty much twice the footprint. Aka yikes this could be one tall tower which may well finally break the 1700ft barrier. Fingers crossed.

I should also point out that zoningwise, Vanderbilt is only a 1.3-1.4 msf building. This site, with a physically smaller footprint, is actually of a slightly larger lot size. I’m not sure how that works, as far as zoning goes. But this site has a FAR of 27, and they can only build on the block portion of the lot (only about 25,000 sf).

[NYguy]

https://nypost.com/2024/04/21/real-e...ve-boondoggle/


By Lois Weiss
April 21, 2024

At 250 Park Ave., on the market through Newmark, lease clauses allow tenants to be booted. Nevertheless, it may simply be torn down and redeveloped to match its neighboring and gigantic new JPMorgan Chase office building.

“It is clearly simpler and faster to rip down and build what you want,” Neveloff said.

[SkyHigher]

Interesting....


Well let's hope 350 Park at 1600ft has started a trend in the area. This building is a similar sized foot print to 350 Park? There are no height limits as such? Therefore I don't know why we ain't well past 1700ft already?

If that Oklahoma Tower at nearly 2000ft goes up the 1776ft record way gone. Midtown needs to get something taller to get that record back.

[NYguy]

Originally Posted by SkyHigher

Interesting....


Well let's hope 350 Park at 1600ft has started a trend in the area. This building is a similar sized foot print to 350 Park? There are no height limits as such? Therefore I don't know why we ain't well past 1700ft already?

If that Oklahoma Tower at nearly 2000ft goes up the 1776ft record way gone. Midtown needs to get something taller to get that record back.

What may or may not happen in OKC has no bearing on what happens here.

This site, at 25,000 sq ft, is less than half 350 Park's 350,000 sf. It's actually the same size as 343 Madison's 25,000 sf, but with about a third more development rights.

[SkyHigher]

Originally Posted by NYguy

What may or may not happen in OKC has no bearing on what happens here.

This site, at 25,000 sq ft, is less than half 350 Park's 350,000 sf. It's actually the same size as 343 Madison's 25,000 sf, but with about a third more development rights.

Ah right. thanks.