In a startling Thursday announcement, the Trump administration signed an agreement with Pakistan\u2019s government to \u201cjointly redevelop\u201d the Pakistan-owned Roosevelt Hotel on Madison Avenue \u2014 a vacant eyesore worth at least $1 billion for its development potential, according to real estate analysts.<\/p>\n
The shuttered, 22-story hotel<\/a> between East 44th and 45th streets closed during the pandemic. Former Mayor Eric Adams filled it with 1,000 migrants until last June under a leasing agreement with Pakistan International Airlines, the hotel\u2019s owner of record since 2000.<\/p>\n The agreement between Washington and Islamabad was negotiated by President Trump\u2019s special envoy Steven Witkoff, according to Pakistan\u2019s finance ministry. Reuters first reported the agreement<\/a>.<\/p>\n The shuttered, 22-story Roosevelt Hotel between East 44th and 45th streets closed during the pandemic. Robert Miller<\/p>\n A source speculated, \u201cThis could be a long-term play for [Steven] Witkoff,\u201d who played a big role financing\u00a0Manhattan hotels. via REUTERS<\/p>\n But the announcement raised more questions than it answered about the precious site\u2019s future. It said nothing about how the seeming partnership would work or which side would be calling the shots.<\/p>\n In the absence of clarification from the White House, speculation was rampant as to the agreement\u2019s meaning on Thursday.<\/p>\n \u201cUnbelievable,\u201d one Manhattan power broker said of the news.\u00a0<\/p>\n Another speculated, \u201cThis could be a long-term play for Witkoff,\u201d who played a big role financing\u00a0 Manhattan hotels including the Times Square Edition and the Faena next to the High Line.<\/p>\n The Pakistan finance ministry\u2019s agreement is with the US General Services Administration, Reuters reported. It appears to be non-binding, but GSA didn\u2019t respond to The Post\u2019s request to clarify the deal.<\/p>\n The announcement said the goal is to \u201csecure maximum value for this property in alignment with the [Pakistan] government\u2019s privatization strategy\u201d while strengthening economic ties between the two governments.<\/p>\n It \u201coutlines plans to cooperate on the operation, maintenance, renovation and redevelopment\u201d of the Roosevelt, the Pakistan agency said. The Pakistani government is $7 billion in hock to the International Monetary Fund and is desperate to sell off assets to pay off the debt.<\/p>\n The vacant eyesore is worth at least $1 billion for its development potential, according to real estate analysts. Stephen Yang<\/p>\n Despite its history, the Roosevelt site is most valuable as either an all-office or mostly-office tower. Luiz C. Ribeiro for New York Post<\/p>\n The Roosevelt had a proud, century-long legacy that included appearances in movies such as \u201cThe French Connection\u201d and \u201cWall Street.\u201d Guy Lombardo\u2019s band played there on New Year\u2019s Eve for 30 years.<\/p>\n Despite its history, the Roosevelt site is most valuable as either an all-office or mostly-office tower.<\/p>\n The building takes up the entire block between Madison and Vanderbilt avenues and East 44th and 45th streets. It\u2019s at the heart of the country\u2019s hottest office market<\/a>, where rents easily top $200 per square foot in new buildings.<\/p>\n The development boom around Grand Central Terminal includes SL Green\u2019s One Vanderbilt, JP Morgan Chase\u2019s new headquarters tower and a skyscraper under construction by Boston Properties at 383 Madison Ave.<\/p>\n The Roosevelt site can be built up to 1.3 million square feet as-of-right and much larger \u2014 nearly 2 million square feet \u2014 if an owner were to exploit zoning changes that allow a size bonus in exchange for transit and other public amenities.<\/p>\n