Waterman and HPS Investment Announce Relationship for Redevelopment of 850 Third Ave

Waterman Interests, LLC, a privately-held commercial real estate investment and operating company (Waterman), and HPS Investment Partners (HPS) have entered into a strategic relationship for the redevelopment of 850 Third Avenue, a 605,000 square foot, 21 floor office building in Manhattan.

Built in 1961 and designed by Emery Roth Architects, 850 Third Avenue currently offers the largest block of available space in Midtown East — more than 400,000 square feet — and will receive a substantial capital investment to redevelop the building into a compelling headquarters building. 850 Third was one of the first two buildings to receive approval for participation in the New York City Economic Development Corporation’s M-Core program.  M-Core provides owners of commercial office buildings with a range of tax benefits to support transformative renovations of office buildings located in Manhattan south of 59th Street to create new, high-quality, amenity-rich office space.

“We look forward to our partnership with Waterman Interests and utilizing their expertise and track record to redevelop 850 Third Avenue and deliver the building into a market that is experiencing momentum from large tenants seeking office owners with exceptionally strong balance sheets and management teams,” said Joseph Tansey of HPS.  “Previous Waterman-led redevelopments, including Lever House and 400 Park Avenue, and their management team’s experience over three decades in New York City, influenced our thinking about what we can achieve with this well-located Manhattan building.”

“With 850 Third we have an extraordinary opportunity to reintroduce the property as a sought-after address,” said Simon Wasserberger, Managing Director at Waterman.  “Execution of a thoughtful and comprehensive capital redevelopment program, in tandem with the M-Core award allows us to deliver the preeminent office building on Third Avenue, specifically designed for large tenants who demand exceptional building infrastructure, amenities, and identity.”