In a startling Thursday announcement, the Trump administration signed an agreement with Pakistan’s government to “jointly redevelop” the Pakistan-owned Roosevelt Hotel on Madison Avenue — a vacant eyesore worth at least $1 billion for its development potential, according to real estate analysts.
The shuttered, 22-story hotel between East 44th and 45th streets closed during the pandemic. Former Mayor Eric Adams filled it with 1,000 migrants until last June under a leasing agreement with Pakistan International Airlines, the hotel’s owner of record since 2000.
The agreement between Washington and Islamabad was negotiated by President Trump’s special envoy Steven Witkoff, according to Pakistan’s finance ministry. Reuters first reported the agreement.
But the announcement raised more questions than it answered about the precious site’s future. It said nothing about how the seeming partnership would work or which side would be calling the shots.
In the absence of clarification from the White House, speculation was rampant as to the agreement’s meaning on Thursday.
“Unbelievable,” one Manhattan power broker said of the news.
Another speculated, “This could be a long-term play for Witkoff,” who played a big role financing Manhattan hotels including the Times Square Edition and the Faena next to the High Line.
The Pakistan finance ministry’s agreement is with the US General Services Administration, Reuters reported. It appears to be non-binding, but GSA didn’t respond to The Post’s request to clarify the deal.
The announcement said the goal is to “secure maximum value for this property in alignment with the [Pakistan] government’s privatization strategy” while strengthening economic ties between the two governments.
It “outlines plans to cooperate on the operation, maintenance, renovation and redevelopment” of the Roosevelt, the Pakistan agency said. The Pakistani government is $7 billion in hock to the International Monetary Fund and is desperate to sell off assets to pay off the debt.
The Roosevelt had a proud, century-long legacy that included appearances in movies such as “The French Connection” and “Wall Street.” Guy Lombardo’s band played there on New Year’s Eve for 30 years.
Despite its history, the Roosevelt site is most valuable as either an all-office or mostly-office tower.
The building takes up the entire block between Madison and Vanderbilt avenues and East 44th and 45th streets. It’s at the heart of the country’s hottest office market, where rents easily top $200 per square foot in new buildings.
The development boom around Grand Central Terminal includes SL Green’s One Vanderbilt, JP Morgan Chase’s new headquarters tower and a skyscraper under construction by Boston Properties at 383 Madison Ave.
The Roosevelt site can be built up to 1.3 million square feet as-of-right and much larger — nearly 2 million square feet — if an owner were to exploit zoning changes that allow a size bonus in exchange for transit and other public amenities.
An outright, open-market sale of the land could easily fetch $1 billion, analysts said.
But PIA’s strategy has long baffled real estate professionals. At different times, officials said they would sell the Roosevelt, reopen it as a hotel or seek a development partner or equity investor.
Two years ago, PIA tapped prominent brokerage JLL to advise it on options and ultimately to put it up for sale.
The campaign was said to attract the interest of Tishman Speyer, SL Green and Related Companies, although it wasn’t known whether any made a formal offer.
But PIA and JLL went their separate ways last year for reasons that weren’t clear.
