TF Cornerstone, MSD Partners Planning Massive New Skyscraper In Midtown East

Grand Hyatt New York

A New York City developer and Michael Dell's investment firm are planning to pull down the Grand Hyatt New York next to Grand Central Terminal and build a 2M SF mixed-use tower in its place.

The planned building, announced last week, is the most recent project to make use of the Midtown East rezoning, which allows taller, denser buildings in the area around the historic train station and Park and Lexington avenues.

TF Cornerstone principal Jeremy Shell said in a release that the building is an opportunity to “bring a new icon to New York’s skyline and help advance the city’s goals for desperately needed new development and infrastructure in East Midtown.”

The building was remodeled by now-President Donald Trump as one of his first real estate projects in Manhattan. He is no longer an owner of the property.

The new, mixed-use building at 42nd Street and Lexington Avenue would feature offices, retail space and a smaller version of the Hyatt. The building still needs city and state approvals and there is not yet a formal agreement signed. The hotel expects to stay open until at least 2020, The Wall Street Journal reports.

The building would be made possible with increased density allowed under the rezoning, along with development rights from Grand Central Station that they already own.

Hyatt’s lease on the property runs 100 years and expires in 2077. TF Cornerstone and MSD Partners plan to take over the lease, according to the newspaper. The group said it also plans to make improvements to Grand Central.

Last year, JPMorgan Chase announced it would build a new, 2.5M SF skyscraper to replace its office building at 270 Park Ave., the first major project under the rezoning. The 70-story tower would serve as its new global headquarters with 15,000 employees. The bank was the first to make use of the new rezoning plan in Midtown East, and many predicted the move would kick-start a comeback for the area.

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