GDS Development, a builder with several commercial projects underway in the city, is negotiating to purchase an over 100-year old residential co-op building at 417 Park Ave. on the corner of East 55th Street for around $200 million, several sources with knowledge of the deal said.
If completed, the firm could erect a nearly 220,000 square foot boutique office building on the site under the rezoning plan, or an even larger structure if it is able to purchase neighboring properties to enlarge its footprint.
The owners of 405 Park Ave., which is separated from 417 Park Ave. by a small townhouse, are using the rezoning to add four new floors on top of the existing 17-story office building.
The market for newly built office space in what is considered one of the most prestigious corridors in Midtown has been brisk. Across the street from 417 Park Ave., a new tower that is under construction at 425 Park Ave., recently struck a deal to have its anchor tenant, the hedge fund Citadel, expand by more than 50% to over 300,000 square feet. The financial firm Sentinel Capital Partners meanwhile just signed a high priced deal at One Vanderbilt.