SL Green has announced that the litigation around Kohn Pedersen Fox‘s (KPF) One Vanderbilt was settled, paving the way for construction to continue.
The suit, brought by Andrew Penson of Midtown TDR Ventures, the owner of Grand Central Terminal, against SL Green and the City of New York involved a dispute over the station’s air rights. Midtown TDR Ventures challenged the Vanderbilt Corridor rezoning amendment and the One Vanderbilt special permit that allowed the supertall to move forward. Recently, though, one of Midtown TDR Ventures investors, Lehman Broothers Holdings, sold a $65 million stake in the property, which may have prompted the settlement. The settlement “[eliminates] uncertainty surrounding the building,” according to a press release from the SL Green’s PR agency.
The 1,401-foot-tall tower, bounded by Vanderbilt and Madison avenues between East 42nd and East 43rd streets, is slated to add 1.7 million square feet of Class A commercial space to the neighborhood. KPF refers to the building as “a 21st century successor to Rockefeller Center” that dialogues with the city’s iconic office towers and Grand Central, its neighbor.
To no one’s surprise, Marc Holliday, CEO of SL Green, praised the settlement in a press release: “This is a major milestone for the future of East Midtown, clearing the way for One Vanderbilt to deliver state-of-the-art Class A office space and a $220 million investment in Grand Central’s transit infrastructure. We’re pleased that the new ownership of Midtown TDR Ventures shares our commitment to development in East Midtown and worked with us to quickly reach this agreement. With demolition nearly complete and work already underway on public improvements, One Vanderbilt is well on the way to becoming a reality.”
As plans call for the tower to be connected to Grand Central, SL Green has agreed to invest $220 million in public infrastructure improvements in and around the station.