Airbnb has emerged as the previously unknown buyer of the landmark building at 281 Park Avenue South in Manhattan's Gramercy neighbourhood. This property is known for its connection to Anna Delvey. Aby Rosen's RFR had closed a deal in mid-June to sell the six-storey, 42,500 square foot building on the corner of East 22nd Street, also known as the historic Church Missions House, with the buyer's identity initially unknown.
The Wall Street Journal reported that Airbnb acquired the property for US$81.5 million, four years after the building was originally put on the market for US$135 million. This deal represents the first office property the short-term rental platform has purchased in New York City. Brian Chesky, CEO of Airbnb, stated in a press release that New York City has been an important part of their story since Airbnb's early days. The building reflects their long-term commitment to the city and will become one of their largest employee hubs outside of San Francisco.
Historical Significance and Sales Process
Built in 1894, the building was commissioned by donors such as Cornelius Vanderbilt and J. Pierpont Morgan, to designs by architects Robert Gibson and Edward Neville. Due to its medieval-inspired façade and historical significance, the property was designated a city landmark in 1979. RFR acquired the property in 2014 for US$50 million. However, after some tenancy issues, the owner put it up for sale in 2022. Aby Rosen commented that great buildings reward excellent care. They bought 281 Park Avenue South because it was a masterpiece and they restored it with all the care a landmark deserves, and this outcome is the consequence of that.
281 Park Avenue South also gained notoriety after playing a significant role in the downfall of con artist Anna Delvey in 2019, who had attempted to lease the property for her art and social foundation. Now, it will find a new home as Airbnb's New York office, which currently also leases office space in the Financial District at 222 Broadway.
Outlook and Market Conditions
It is unclear whether the deal represents a relocation or a new site for the company. However, James Nelson of Avison Young emphasised that it was important to find a buyer for 281 Park Avenue South who appreciated the property's significance and its unique architectural heritage. Nelson highlighted that 281 Park Avenue South is “a truly special asset with a rich history and inimitable character”. He added that they were delighted to have achieved an outcome that honours the building's legacy while positioning it for continued success. Bernadette Brennan of SERHANT noted that 281 Park Avenue South attracted significant attention from the outset, and the level of interest reflects how unique this property is.
The purchase comes at a time when Airbnb continues to lobby New York authorities to ease the city's strict short-term rental regulations. In 2023, “Local Law 18” strengthened the city's stance against short-term rentals, leading to a significant reduction in the number of Airbnb listings operating in the city.
- —Sale: 281 Park Avenue South, Manhattan, New York City
- —Buyer: Airbnb
- —Seller: RFR (Aby Rosen)
- —Purchase Price: US$81.5 million
