Rudin Family Files Plans For 342K Sf Midtown Office Building
Despite the turbulent future of the Manhattan office market, the Rudin family is moving forward with plans for a new office building in Midtown, which appears to be 55,000 square feet larger than it was two years ago. .
Rudin Management applied for permits last week to build a 342,000 square foot, 40-story tower at 415 Madison Avenue, as PincusCo first reported. It would replace a 24-story, 216,000-square-foot office building completed in 1955 and purchased by Rudin in 1999.
The 11,200 square foot ground floor will feature retail and an open-air public lobby. The rest of the building will be office space, with floors ranging from over 6,000 square feet to nearly 11,000.
It would be the tallest new building in Midtown East since the start of 2020. Demolition is underway and construction is expected to take four years, New York Yimby reported Wednesday.
Rudin’s 2020 bid called for a 252,000 square foot office tower. The company also separately filed over 35,000 square feet for a public lobby, which would bring the project to 287,000 square feet. The request called for 330 square feet of ground floor retail and a 2,400 square foot public lobby.
A spokesperson for Rudin said the project acreage has remained stable throughout the approval process, although some aspects of the development may have changed. But the 2020 filings did not include the 342,000 square foot figure, which the company could not do by right.
Rudin is applying for a special permit to rebuild nearly 41,000 square feet of nonconforming existing floor space and to transfer development rights to the iconic St. Bartholomew’s Church at 325 Park Avenue. The church filed as co-plaintiff.
St. Bart’s was a leading advocate for the expanded authority to sell air rights that was included in the Midtown East rezoning that passed in 2017. It and other religious institutions have argued that they needed money to repair their iconic facades.
Rudin’s project would also add an entrance at the corner of East 48th Street and Madison Avenue to an underground concourse for the Long Island Railroad and crossing to Metro-North trains. The site is a five-minute walk from Grand Central Terminal – a key factor as companies try to attract employees to their office.
The applications were approved by the Planning Commission last October and the local community council approved by an almost unanimous vote.
Rudin’s pursuit of a new office tower in Midtown comes at an uncertain time for the Manhattan office market, though insiders expect newer buildings to fare better.
Rental volume in Manhattan fell 4% in the second quarter to 7.3 million square feet, according to a report by Colliers. Manhattan’s vacancy rate for the quarter was 17.2%, not far off February’s record high of 17.4%. Office supply has jumped by more than 72% since the start of the pandemic.
Rising interest rates are also threatening property values, and stocks of publicly traded office REITs have been hammered. Rudin is a private company.