Design and Construction Report staff writer
A long-underused Midtown office tower is getting a major overhaul, thanks to a new city program aimed at reviving aging commercial buildings.
The 21-story building at 850 Third Avenue will undergo a $57 million renovation that includes upgrades to the lobby, new windows, modern office layouts, and the addition of tenant amenities like meeting space and retail. The project is part of the Manhattan Commercial Revitalization (M-CORE) program, which offers financial incentives to encourage the renovation of outdated office buildings.
When finished, the building will feature about 592,000 sq. ft. of office space, 10,000 sq. ft. of ground-floor retail, and 13,500 sq. ft. of space for amenities. Plans for the retail space include an “open restaurant” concept with expanded storefronts to attract foot traffic and bring more energy to the street.
The property has not seen a major renovation since 2008.
The updates will also include all-new elevators, HVAC and electrical systems, and dedicated space for a potential business incubator or a company in the green or tech sectors.
The M-CORE program, launched last year, is designed to help modernize aging office buildings that have struggled to keep up with changing workplace trends and local energy laws. The goal is to make these buildings more attractive to tenants and help boost activity in Manhattan’s business districts.
HPS Investment Partners is leading the renovation and has partnered with Waterman Interests to manage the project. Leasing will be handled by Jones Lang LaSalle for the offices and Newmark Group for the retail space.
Construction is expected to transform the building into a more modern, energy-efficient workplace that reflects the needs of today’s commercial tenants.
