U.N. Plaza Buildings to Get $500M Revamp
By Mark Hallum February 3, 2025 2:55 pm
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The public-benefit corporation United Nations Development Corporation (UNDC) put $500 million toward the redevelopment of One and Two United Nations Plaza, something officials say could create 1,800 jobs.
Up to 900,000 square feet in the two buildings, constructed between 1976 and 1983, will be updated to modern energy standards with Spacesmith, Cosentini Associates and Turner Construction carrying out the work.
As part of the deal, the United Nations agreed to new long-term leases with the UNDC, which owns and operates the buildings, in an effort to revitalize the U.N. campus and consolidate U.N. offices within the buildings, according to City Hall and Gov. Kathy Hochul’s office.
“New York City stands as an undeniable global hub, and the United Nations’ commitment to long-term commercial office space in our city underscores that distinction,” First Deputy Mayor Maria-Torres Springer said in a statement. “The redevelopment of the U.N. Plaza properties will not only revitalize Midtown’s office market but also modernize office spaces for the thousands within the U.N. community, all while generating high-quality jobs.”
Cushman & Wakefield manages the assets and will be handling construction management for the facelift through its [roject & development services arm.
The terms of the deal between the U.N. and UNDC, such as square footage and asking rent, were not made immediately clear. Newmark (NMRK)‘s Roy Abernathy, Jason Perla and Jim Saunders represented the UN and Brian Waterman and David Berke from the same brokerage handled the deal for UNDP.
CBRE (CBRE)‘s Scott Gottlieb negotiated on behalf of the city government, which owns the properties, in the deal.
CBRE and Newmark did not immediately respond to requests for comment.
In order to fund the repositioning, the UNDC plans to issue up to $380 million in bonds underwritten by Goldman Sachs (GS) and Siebert Williams Shank.
“The redevelopment of United Nations Plaza will be a key part in continuing to revitalize Manhattan through the creation of thousands of good-paying union jobs and economic stimulus that will support our communities,” Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, said in a statement.
The UNDC is a public benefit corporation that was formed by the state in 1968 to develop the buildings and accommodate the needs of U.N. operations, which serves to boost New York City’s global standing. About 20,000 workers are employed in the area via the U.N., according to Mayor Eric Adams and Hochul.
Mark Hallum can be reached at mhallum@commercialobserver.com.
