Klövern AB buys 417 Park Avenue

Klövern AB of Sweden and GDS Development Management have paid $184 million to acquire 417 Park Avenue, TRD first reported. The buyers are expected to take advantage of the Midtown East rezoning and build a large office building.

• Dig Deeper: The 14-story co-op building spans 89,651 SF, and contains 29 apartments. It allows for the total office development of 218,125 SF. 

• Just the starting point: Nearby buildings with landmark status may sell their unused development rights anywhere in the district. On such sales, the city collects either $61.49 per square foot or 20 percent of the total cost of the air rights, whichever is higher. Expect the developers to add air rights to lower their basis.