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RXR and TF Cornerstone Propose to Build Tallest-Ever U.S. Skyscraper That Could Cost $6.5B

TF CornerStone and RXR are proposing what would be the tallest skyscraper to ever be built in the United States.

The New York proposed building, called 175 Park Avenue, would stand 1,575-foot-tall and cost as much as $6.5 billion, according to a report from Business Insider. Not only would it be the tallest skyscraper by height — but it would shatter the record for costs too. The tower would feature a mixed-use setting between office and hotel. Other potential amenities that would be included are unclear. The project would surround the Chrysler Building and a new headquarters that's under development for JPMorgan Chase.

To finance part of the costs, the two New York developers are seeking to apply for up to $4.84 billion in federal loans. While that might seem like an ambitious plan because it's up to the Federal government's Department of Transportation to decide on the allocation of funds, Scott Rechler, CEO and chairman of RXR, expects the incoming Trump Administration to support the project.

While he hasn't had any discussions to this point with the President-elect, Rechler said: "He understands office buildings better than any president before."

After all, Trump's policies have been generally viewed as favorable by the CRE industry. Sure, there's the debate over the impact that potential tariffs could have on inflation, but lowering the tax burden on corporations (as he did in his first term) and deregulation is something that could stimulate the industry.

Both RXR and TF are seeking support from lending programs that offer low-cost financing and longer terms including the Railroad Rehabilitation and Improvement Financing and Transportation Infrastructure Finance and Innovation Act.

Rechler admitted it's been tough to secure financing in the office market currently, as banks and other lenders have shied away from properties that have higher vacancies and the higher interest rate impact on asset values.

Reprinted with permission from the Friday, 17 January 2025 10:21:13 EST online edition of GlobeSt © 2025 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.