Another supertall tower will join the $3 billion+ club. The Real Deal reports that SL Green Realty has pegged the cost of One Vanderbilt, Midtown’s future tallest tower, at $3.14 billion. The city’s largest office landlord also said it hopes to close on a $1.5 billion construction loan by the end of the summer, leaving $1.64 in equity needed to complete the 1,401-foot tower designed by Kohn Pedersen Fox.
As TRD notes, One World Trade Center became the world’s most expensive office tower in 2014 when it opened with a final cost of around $3.8 billion. Bjarke Ingels’ planned High Line tower known as the Spiral is also expected to run over $3 billion.
SL Green CEO Marc Holliday said that a “project of this size does present an element of risk,” not in reference to leasing, but to its scale and expense. Therefore, the developer is looking for joint venture partners to take a 50 percent stake in the project, which would cover about $820 million of the required equity.
The 65-story, 1.7 million-square-foot building is part of the controversial Midtown East Rezoning. It’s being constructed with air rights from the Grand Central Terminal area and zoning bonuses awarded to the developers for providing $210 million in infrastructure improvements. As 6sqft previously reported:
Demolition of the pre-war buildings at the site is expected to last until the second quarter of 2016, and excavation/ foundation work is slated to end by 2017. TD Bank is already lined up to occupy 200,000 square feet of space in the building and will also provide a flagship retail branch at the base.
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Neighborhoods : Midtown East