A half-billion dollar development plan was launched Monday for the United Nations Plaza, aiming to create thousands of jobs.
Amid the city’s “Jobs Week,” Mayor Eric Adams, Gov. Kathy Hochul, and the United Nations Development Corporation (UNDC) announced a new $500 million development plan for One and Two United Nations Plaza. The plan is expected to create over 1,800 construction jobs while also and preserving thousands of existing jobs created directly or indirectly by the UN community. The development is also expected to bring billions of dollars back to the city’s economy.
“The United Nations and New York City have a partnership that goes back nearly 80 years, and this announcement of a comprehensive repositioning of the buildings combined with new long-term leases continues that partnership for years to come,” said George Klein, chairman of UNDC.
As part of the agreement, the UN has committed to long-term leases of space at UN Plaza. The announcement comes as the city celebrates its eighth time breaking the all-time high jobs record and seeing unemployment go down.
“Having the United Nations headquartered in New York City is a powerful, symbolic reminder of our city’s proud reputation as a global capital along with being an economic engine and job creator,” said Mayor Adams. “As we kick off ‘Jobs Week,’ we’re proud to partner with the state for this groundbreaking development plan for the UN Plaza that will create 1,800 jobs in the process, re-energize our commercial office space, and generate billions in economic impact for our city.”
“This $500 million investment by the United Nations Development Corporation is more proof that New York’s resurgence is in full swing,” said Hochul. “Projects like this create good-paying jobs, drive economic growth, and reinforce our position as the global capital of commerce and diplomacy. When we build, we create opportunity — and there’s no better place for it than right here in Manhattan.”
The project will include building-wide renovations, with the project as a whole covering approximately 900,000 square feet. Renovations will include new enhanced energy-efficient systems under New York state’s BuildSmart 2025 program and updates to current fire safety and disability codes and regulations.
CBRE acted as advisor to UNDC, and Newmark acted as advisor to the UN for the project. The project’s architect is Spacesmith; the mechanical, electrical, and plumbing engineer is Cosentini Associates; and the construction manager is Turner Construction Company, which has signed a Project Labor Agreement with the Building and Construction Trades Council that will benefit trade contractors and result in cost savings for the project. UNDC plans to issue up to $380 million in bonds to fund the project, with the underwriters for financing being Goldman Sachs and Siebert Williams Shank.
Construction on the project is expected to begin in the second quarter of 2025 and will take 48 months to complete.
