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consortium backed by Morgan Stanley is poised to take over as Pakistan International Airlines’ (PIA) financial adviser for the Roosevelt Hotel site in Midtown East, according to The Post. The group, which will include CBRE, would replace JLL, the firm that withdrew last summer over alleged conflicts of interest. PIA, which reports to the Pakistani government, has been soliciting proposals from seven potential advisers to shape the site’s future and negotiate any transaction.
The Roosevelt property, valued at more than $1 billion, remains in limbo. No definitive plans have emerged, and insiders note that the owners have entertained multiple scenarios for a decade without action. JLL’s exit was attributed to the firm’s representation of several developers and tenants with interests in the site, prompting the government agency to cite conflict‑of‑interest concerns. Since then, PIA has not named a new adviser, though Arab News reports the airline intends to expedite the selection this month.
A prominent Manhattan broker remarked that the project’s ties to Pakistan’s government and military, which frequently change hands, make progress unlikely. Yet it is common for large brokerages to manage both sides of a deal, employing “Chinese walls” to separate negotiating teams. JLL’s client list, which includes major developers and tenants, was known to both the brokerage and PIA when the airline hired JLL in February 2024. Peter Riguardi, JLL’s regional CEO, declined to comment, and PIA has not responded to requests for input.
Pakistan’s need for proceeds from the Roosevelt sale is driven by a $7 billion IMF bailout. The site sits between Madison and Vanderbilt avenues, east of 44th and 45th streets, adjacent to the new JP Morgan Chase headquarters, a forthcoming Boston Properties tower, and an SL Green development on the former Brooks Brothers location. Under Midtown zoning, a new office tower could reach 1.8 million square feet, leveraging large‑size bonuses in exchange for pedestrian and transit upgrades.
The 1,000‑room hotel has been vacant since June, when the city ended a contract that had used it as a migrant shelter. PIA has oscillated between selling outright, partnering with a developer, or retaining the property. Earlier this month, privatization official Muhammad Ali suggested the building might remain standing and reopen as a hotel, a notion that drew skepticism from hotel experts who warned that cleaning up after a year of migrant occupation would take at least a year, and that market conditions for offices and hotels could shift by then.
