In the dynamic narrative of urban development, it should not surprise us that some of the most powerful forces on the planet like hedge funds, real estate, religion and human ingenuity are pointing us to a seismic change in how we can live our lives.
Air Rights - Skyline Transformation
St. Patrick's Cathedral in New York plays a crucial role, particularly in the strategic use of its air rights and how to follow the smart money. The Cathedral owners are positioning themselves to sell air rights, allowing for a new high-rise building in the Midtown East rezoning district.
The Roman Catholic Archdiocese of New York plans to sell air rights to improve spaces around the church property. A "restoration and maintenance plan" was presented to the Landmarks Preservation Commission (LPC). New guidelines allow air development rights to be transferred anywhere within the larger Midtown East rezoning district, providing more flexibility for owners of landmark properties and air rights holders to cash in. Air rights without development permissions attached, can also be transferred, and without blessings.
Recent Past
In 2017 The Archdiocese of New York identified a potential buyer interested in acquiring a portion of air rights from St. Patrick's Cathedral, a transaction that was anticipated to yield a minimum of $7.2 million or ~$61 per square foot.
A key aspect of the rezoning permits landmarked buildings in the designated area to sell their air rights. St. Patrick's Cathedral was confined to selling air development rights solely for us by adjacent projects. The rezoning broadened this scope, enabling the Cathedral to engage with any new developments within the expanded 78 block area.
Hedge Fund
A recent development involving Citadels CEO Ken Griffin is paying the Archdiocese of New York up to $164 million for St. Patrick's air development rights.
Each square foot costs $312.50. An increase of 510% in 7 Years for what some deem thin air, and other’s valuable assets.
Griffin's vision includes a 1.7 million-square-foot skyscraper with Citadel occupying about half of the space. Griffin's push for office expansion aligns with his belief that remote work weakens corporate culture, and real estate is a good bet so long as it’s
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