Waterman Interests and HPS launch 605,000 s/f redevelopment project led by MdeAS Architects

Manhattan, NY Waterman Interests, LLC, a privately-held commercial real estate investment and operating company (Waterman), and HPS Investment Partners (HPS) have launched a comprehensive redevelopment project for 850 Third Ave., a 605,000 s/f, 21-floor office building near Grand Central Terminal.

Built in 1961 and designed by Emery Roth & Sons, 850 Third Ave. offers the largest block of available space in Midtown East – 450,000 s/f – and will receive a substantial capital investment to reposition the building to meet growing demand for new office space. 

MdeAS Architects is the building architect and Vocon is interior architect; Turner will lead construction for the project; Cosentini will lead mechanical engineering and JLL will serve as exclusive leasing agent for the office space.

850 Third was the first building to receive approval for participation in the New York City Economic Development Corp.’s M-CORE program, which provides for certain tax incentives to support transformative renovations of office buildings located in Manhattan south of 59^th St. M-CORE is specifically designed to spur investment in new, high-quality, amenity-rich office space that supports vibrant, dynamic and resilient neighborhoods.

“Waterman Interests and HPS have reimagined 850 Third Ave. as a contemporary, people-first property that fully engages tenants and guests, supporting creativity, collaboration and productivity,” said Tom Vecchione, vice chairman and managing principal with Vocon.

The redevelopment project will reposition 850 Third Ave. as a premier Midtown East office destination, with a focus on modern amenities, tenant flexibility, and large contiguous floorplates. The project will include an all new, expanded lobby with contemporary finishes and a 14,000 s/f conference and social center with 200-seat capacity, including multiple collaboration and meeting spaces. In addition, the project will feature new elevators, windows, storefronts, and building systems, including new floor-by-floor DX HVAC units.

“The investment in 850 Third Ave. will be transformative for the building. The new exterior design will distinguish it from other properties on Third Ave. while improving its overall performance,” said Dan Shannon, managing partner at MdeAS Architects. “Infrastructure upgrades combined with modern amenities will extend the legacy of this classic midtown office building, preparing it to serve generations of future tenants.” 

“This strategic capital redevelopment program positions the building for tenants who demand a modern infrastructure and appearance in a location that offers access to transportation, corporate density, and neighborhood amenities,” said Simon Wasserberger, managing director at Waterman. “The large block of space offers a single user numerous customization and branding opportunities at a time when there is very little exceptional space available in the market.” 

850 Third is just blocks from Grand Central Terminal amid leading corporate neighbors, including Bloomberg, Citadel, J.P. Morgan, Kirkland & Ellis, and Blackstone. The property stands in proximity to multiple subway lines (4/5/6, E/M, N/R/W, B/D/F/M, 7, and S trains).