Third Avenue’s Revitalization
It seems Third Avenue is in the spotlight again.
The redevelopment of 850 Third Avenue marks a turnaround for the area, especially after years of jokes about its reputation. This $80 million project has introduced some appealing new features, complementing its revamped interior and exterior.
Waterman Interests, along with HPS Investment Partners, has partnered with a prominent restaurant, bringing some life to the mostly empty 605,000-square-foot mid-century tower situated between East 51st and 52nd Streets. Meanwhile, renovations are moving swiftly, aiming for a reopening by year’s end.
This resurgence at 850 Third occurs after many businesses opted for more modern spots on Park Avenue, Sixth Street, and the West Side. The recent upgrades to the street have included significant projects that have cleared out old, run-down offices, ultimately attracting more residents.
Kelari Hospitality Group, known for the popular Kerali Taverna on East 44th Street, plans to open Artemis—a 4,500-square-foot Greek and Mediterranean restaurant—on the ground floor, alongside a private dining area in the basement.
Stavros Aktipis, the owner of Kelari, described the new location as a “unique gathering place” for an array of people, from business professionals to locals. With numerous offices nearby, it seems like a natural choice for everything from business lunches to after-work meet-ups.
The addition of this restaurant enhances the appeal of 850 Third Avenue, a 21-story building that symbolizes the area’s ongoing transformation.
The extensive renovation includes a brand-new lobby, updated elevators, and improved mechanical systems. The redesigned façade by Dan Shannon of MdeAS Architects, who previously worked on Vornado’s Two Penn, features new double-glazed windows and brightens up the previously dull exterior, providing a fresh and modern look, according to Simon Wasserberger, managing director at Waterman. Construction on the exterior walls is set to commence soon.
Wasserberger also pointed out that 850 Third offers Midtown’s largest contiguous office space, with approximately 450,000 square feet available across floors three to seventeen. The leasing agency JLL is targeting companies in sectors like law, insurance, and accounting to fill these spaces.
Across the street, 845 Third is undergoing its own changes as Israeli billionaire Idan Offer recently acquired the property and plans to transform it into 529 rental apartments.
In addition, Metroloft is working on renovating the old Pfizer headquarters on 42nd Street, and SL Green intends to kick off renovations at 750 Third Avenue this year.
Recent significant office leases include Bloomberg LP’s grand 925,000 square foot expansion and renewal at 919 Third Street, along with Kirkland & Ellis signing a new lease at 900 Third Street. There’s also buzz around new restaurants coming soon, such as the downtown favorite MAMO at the Lipstick Building.
