MTA Looks To Raise Money By Selling Midtown Buildings

Photograph of 347 Madison Avenue by <a href="http://www.flickr.com/photos/29997762@N05/4670239844/in/photostream/" target="_blank" rel="noopener">R36Coach on Flickr</a>

The cash-strapped MTA announced is will sell its Madison Avenue headquarters—which are in 341, 345 and 347 Madison Avenue—in hopes of getting $150 million to help its coffers. The NY Times reports, "A buyer could demolish the structures and erect a modern skyscraper, and could also buy unused development rights over Grand Central Terminal and build an even taller tower than might otherwise be allowed."

The transit agency, which raised fares and may raise them again in 2013, has a lot of projects, from the Second Avenue subway and 7 line extension to overall infrastructure maintenance, and little support from the state. Which is why they want to take advantage of a waking real estate market to sell the relatively nondescript buildings.

The MTA also says it's taking advantage of "an opportunity created by the MTA’s aggressive cost-cutting, which included a 20 percent reduction in its headquarters payroll and the elimination of 3,500 positions across the organization. As a result, there are now significant vacancies in MTA office space, including 15 percent at the Madison Avenue buildings and the MTA’s facility at 2 Broadway. Under the plan, headquarters employees would be accommodated at 2 Broadway, both by filling vacant space and using the overall space more efficiently. Metro-North personnel currently working in the Madison Avenue offices would be relocated near Grand Central and Metro-North’s other facilities, including an office facility in North White Plains."

The Times notes this is not the first time the MTA has said they would sell the three buildings, the previous times being in 1998 and in 2005. Developer Douglas Durst said, "I’d take a look for the third time."