HPS Investment Partners has closed a deal with the New York City Economic Development Corporation to renovate 850 Third Avenue in Midtown East, Manhattan, marking the first finalized project under the Manhattan Commercial Revitalization (M-CORE) program. The 21-story office building will undergo a $57 million transformation aimed at modernizing the property with upgraded infrastructure, new amenities, and ground-floor retail space. The property is located between East 51st and 52nd Streets.
Originally constructed without major updates since 2008, 850 Third Avenue will receive renovations that include an expanded lobby, all-new HVAC and elevator systems, updated windows, and new electrical infrastructure. The building yields 592,000 square feet of office space, 10,000 square feet of ground-floor retail, and 13,500 square feet of amenity areas. Plans also call for conference facilities on the third floor for over 200 guests and potential tenancy by high-growth industries such as green technology or AI.
M-CORE was introduced in 2023 to incentivize reinvestment in aging office stock across Manhattan. The program supports projects that modernize buildings to comply with Local Law 97 and attract new tenants through contemporary design and functionality. Alongside 850 Third Avenue, M-CORE has also approved projects at 175 Water Street and the Hahn Kook Center at 460 Park Avenue. Applications for the program remain open through August 1, 2025.
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So the blue panels will be replaced by the white ones in the rendering? If so, that will be a big improvement. I wonder if this might be a candidate for redevelopment or residential conversion at some future date.
I’m torn about this. Will we keep changing older building exteriors into something different? Will we have many buildings left that represent design eras from the last century? This particular alteration does keep the feel of a mid century building intact, and that is a bit encouraging. Other buildings like 383 Madison won’t be so fortunate.
Hope the MTA can keep the 3rd Ave subway access open this time.
Just don’t do it to do it wrong. It became outdated so just don’t put a bandaid on it and hope for the best ! Make it something real and definitive – look for some Wow ! Tear out some areas and make some decks and balconies with some greenery and a place to be real outside the glass windows.
Pretty sure that M-Core already closed a project at 161 Water Street aka the WSA Building in FiDi