NEW YORK (Reuters) – A New York developer and a partner plan to demolish the Grand Hyatt New York, the hotel that launched US President Donald Trump's real estate career in Manhattan decades ago, said the two companies on Thursday.
FILE PHOTO: The Chrysler Building is reflected in the Grand Hyatt Hotel Building in Manhattan, New York, May 28, 2015. REUTERS / Carlo Allegri / File Photo
Developer TF Cornerstone and MSD Partners, Managing the Assets of Dell Technologies Founder Michael Dell and his family said they would develop 2 million square feet of office and retail space and a new luxury Grand Hyatt Hotel.
The rebuilding would be in collaboration with an affiliate Hyatt Hotels Corp, TF Cornerstone and MSD Partners said in a statement.
The Grand Hyatt is located immediately east of the Grand Central train station on 42nd Street and was the former Commodore Hotel, an astounding stone building built in 1919, that Trump gutted and re-skinned with a glass frontage after the purchase in 1978.  The hotel was Trump Manhattan's first success after joining real estate with his father, a wealthy developer in the New York City Queens neighborhood where the president grew up. Entering Manhattan established Trump's name as a businessman and made him a source of tabloid fascination.
The new developments will provide new subways and increased connectivity to the Metro Central subway system, and a significant increase in tax revenue, according to the statement.
The project marks a further step in the revitalization of East Midtown where a slider, One Vanderbilt, rises next to the Grand Central on the west side, and JPMorgan Chase & Co plans to build a new headquarters nearby on Park Avenue.
Government and urban approval is necessary and building financing must be arranged, the statement said.
The project may deter potential tenants from moving to Hudson Yards, a district that rises on Manhattan's West Side, where a number of tent companies have decided to move.
"This will be a move for new office owners and potentially entice tenants who would otherwise have considered Hudson Yards," said Myers Mermel, CEO and co-founder of TenantWise, a real estate research and consulting firm.
"It will restore Midtown East as the prominent office district," he said.
Reporting by Herbert Lash; Editing by Peter Cooney