NYCEDC Announces New M-CORE Awardee to Transform Aging Commercial Office Space and Attract Jobs

The Hahn Kook Center, Investing $200 Million for Renovation of 460 Park Avenue, Selected as Third M-CORE Recipient

NYCEDC Opens New Round of M-CORE Applications That Will Close on May 1, 2025

NEW YORK, NY—The New York City Economic Development Corporation (NYCEDC) and New York City Industrial Development Agency (NYCIDA) today announced that the Hahn Kook Center (HKC), an affiliate of the Korean International Trade Association (KITA) located at 460 Park Avenue, has been selected as the third awardee for the Manhattan Commercial Revitalization Program (M-CORE), a key initiative to transform the city’s commercial business districts and cement them as vibrant job centers. 460 Park Avenue serves as the Hahn Kook Center’s U.S. headquarters, and M-CORE will support a $200 million renovation of the aging office building, positioning it as a global hub of international business incubation and partnership. NYCEDC also opened a new round of M-CORE applications that will close on May 1, 2025.

The M-CORE program aims to addresses the challenge of vacancies in older office buildings by providing financial incentives to undertake investments which will improve the quality of Manhattan’s office stock, create desirable workspaces that will attract businesses and top talent, make necessary upgrades and retrofits to ensure compliance with Local Law 97, and introduce dynamic ground floor retail. The overall office vacancy rate is 14.8%, totaling 107 million square feet across New York City. Office visitation to class A+ buildings continues to outperform that of non-trophy office visitation, hitting 86% in December 2024, an increase in 5 percentage points over the past year, higher than overall office visitation which was 72% in December an increase of 3 percentage points over the past year.

“Now, more than ever, is the time to invest in New York City, participate in the growth of the city's economy and accelerate the full recovery of our commercial office market,” said First Deputy Mayor Maria Torres-Springer. “The MCORE program is another example of the Adams administration's sustained focus on revitalizing the city's commercial cores, and I am excited for both the approval of today's deal to activate an underperforming building on Park Avenue and the release of the third round of MCORE applications so that we see more high-impact deals in the near future.”

“As New York City’s economy roars back to life, aging and vacant office space remains a challenge, hurting landlords, small businesses, and our economic future,” said NYCEDC President & CEO Andrew Kimball. “M-CORE is providing a critical shot in the arm for commercial real estate by facilitating the upgrade of underperforming offices into the amenity-rich space that today’s workers demand. The 460 Park Avenue project will provide an economic boost to the surrounding community, while also attracting new international businesses and new jobs to New York City.”

“We are truly excited for the opportunity to bring 460 Park up to the new century as part of the M-CORE program,” said Junbong Lee, President of the HKC. “HKC’s goal has always been to facilitate and enhance the business cooperation between Korea and U.S., and 460 Park as the first overseas asset our parent company acquired to bring Korean companies and supporting institutions to the region. If it were not for M-CORE, HKC could not have embarked on a full-scale renovation to equip this symbol of Korea-U.S. partnership with new amenities and business spaces and to transform the cityscape at the prime cross-section of the Manhattan district.”

460 Park Avenue

As the U.S. headquarters of HKC, the renovation of 460 Park Avenue will further the company’s mission of strengthening bilateral Korean and U.S. trade. The building hosts numerous trade-focused Korean entities, including the Consulate General of the Republic of Korea, the Korea Trade Investment Promotion Agency, and the Korean Chamber of Commerce and Industry, as well as several international firms. The 22-story building has approximately 282,801 square feet of mixed-use space and is currently nearly 40 percent vacant.

M-CORE will support $200 million in planned improvements to 460 Park Avenue including a new lobby to increase space and add natural light, replacement of a street-level marble facade, and full-electrification of the building. HKC will also:

• Meet Local Law 97 emissions requirements and is aiming to achieve a LEED Gold rating or higher and a WELL Certification for positive impacts to human health and well-being.
• Be required to enter into leases with a business incubator or accelerator for international start-ups, in addition to providing pre-built space for growth stage companies.

In addition, 460 Park Avenue will host at least 24 in-person events per year, as HKC is uniquely positioned to provide these business services to international companies looking to scale in New York City due to its relationships across Korean and U.S.-based industry partners.

The selection of 460 Park Avenue follows the first round of M-CORE selections, 175 Water Street and 850 Third Avenue, announced last year. At 175 Water Street, M-CORE is supporting a $150 million demolition and rebuilding of all interior spaces, as well as energy efficiency and other upgrades to attract a community of fashion, arts, creative, and technology tenants. At 850 Third Avenue, M-CORE is supporting a $62.7 million to renovate the lobby and new green terraces, and conduct other upgrades to attract a variety of tenants. Applications for M-CORE awards are open until May 1, 2025 and interested owners can apply here.

“Investing in aging commercial space is a key strategy to driving the city's economic vibrancy, and I am excited to see the renovation of 460 Park Avenue as the third awardee of the M-CORE program,” said Manhattan Borough President Mark Levine. “This project will help support the strength of our city's office economy by investing in improvements that meet the needs of today's workers and advance sustainability goals. As a vibrant, mixed-use borough, it is important to invest in Manhattan's office space and address vacancy through programs such as M-CORE.”

“We are thrilled that the Hahn Kook Center at 460 Park Avenue will be the second M-CORE recipient in our district, following 850 Third Avenue,” said Rob Byrnes, President of the East Midtown Partnership. “The Park Avenue corridor is increasingly important to the vibrancy of the City’s commercial real estate, and the renovation of this building, including the addition of new tenant and public amenity space, will benefit the entire community.”

“We applaud the NYC Economic Development Corporation for its work to revitalize our office stock and drive New York City’s economic growth through the M-CORE program,” said Zachary Steinberg, Senior Vice President of Policy, REBNY. “M-CORE continues to show how public-private partnerships can spur investment to bring older office buildings into environmental compliance and align them with the needs of the modern workforce.”

“New York City’s economy is resurgent but our work is far from done. Further investment is needed to modernize buildings, attract new business, and create more jobs,” said “New” New York Executive Director B.J. Jones. “Today’s announcement is another important step in that direction, as the M-CORE program advances our commitment to making New York City the best place for people to work and businesses to grow.”

Launched in May 2023, M-CORE was a key recommendation from the ‘New’ New York panel’s Making New York Work for EveryoneAction Plan – a set of 40 initiatives to reimagine New York City's commercial districts as vibrant 24/7 destinations – transforming business districts into vibrant, resilient, and healthy neighborhoods, and remain globally competitive in attracting and retaining businesses. The Action Plan consisted of three major elements to help transform Manhattan’s commercial core:

1. Legislative and regulatory changes to facilitate the conversion of 20-30 million square feet of vacant office space to residential. Some of that work is already being undertaken through Mayor Adams’ historic City of Yes for Housing Opportunity, which passed New York City Council last year, as well as other legislative initiatives at the city and state level.

2. Transforming the city’s urban realm with improved green and open space such as Broadway Vision and reimagining 5th Avenue’s retail core. In December, the Adams Administration announced an initial $152.7 million city investment in the city and the Future of Fifth Partnership's plan to transform Fifth Avenue between Bryant Park and Central Park into a world-class, pedestrian center.

3. And the final key element is to convert up to 10 million square feet from aging and vacant office space to amenity rich, high quality office space that meets the demands of the current workforce, which favors a hybrid work model. M-CORE targets buildings that are positioned to upgrade to higher quality office space, enacting the panel’s vision to invest in the City’s central business districts as engines of inclusive economic development.

According to a new NYCEDC “State of the Economy” report published earlier this year, the city has hit record high levels of employment and labor force participation, remains the nation’s top destination for young talent, and has diversified into new, innovative sectors like the life sciences, the green economy, and tech. Companies that are considering expanding to New York City can learn more about these new initiatives and a range of other resources by visiting Choose.nyc.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.