Airbnb buys first NYC office despite years of – Business News
Airbnb is doubling down on New York City despite its years-long battle with native officers over short-term rental restrictions, shopping for its first office within the Big Apple.
The San Francisco-based home-sharing giant paid $81.5 million for the landmarked property at 281 Park Ave. South in Manhattan’s Gramercy neighborhood, the Wall Street Journal first reported.
An Airbnb spokesperson confirmed to The Post that the company bought the building and stated the transaction closed Wednesday.
Airbnb has bought 281 Park Ave. South in Manhattan for $81.5 million, marking the short-term rental giant’s first New York City office building. Penske Media by way of Getty Images
The six-story, 42,500-square-foot Beaux-Arts building will function a devoted hub for Airbnb’s New York workforce, which numbers more than 600 workers within the area.
“This building reflects our long-term commitment to the city and will be home to one of our largest employee hubs outside of San Francisco,” Airbnb CEO and co-founder Brian Chesky stated in a assertion.
“We’re excited to keep investing in the city and the people who make it extraordinary,” Chesky added.
The sale comes as Airbnb continues to push metropolis and state officers to loosen New York’s stringent restrictions on short-term leases.
Local Law 18, which took impact in 2023, dramatically tightened enforcement of town’s long-standing limits on short-term leases by requiring hosts to register with town and forcing reserving platforms to confirm registrations earlier than processing reservations.
Supporters of the law argued it was essential to protect New York’s housing stock and stop residential buildings from functioning as unlicensed resorts.
Airbnb’s newly acquired office at 281 Park Ave. South sits simply north of Manhattan’s Gramercy Park. NurPhoto by way of Getty Images
Airbnb has countered that the restrictions deprive residents of supplemental income and have failed to handle town’s housing affordability disaster.
According to the Journal, Airbnb contributed $10 million final 12 months to its Affordable New York political motion committee, which spent more than $1.3 million opposing mayoral candidates Zohran Mamdani, Brad Lander and Scott Stringer, all of whom have been crucial of the company.
Despite sustaining a “work anywhere” coverage since 2022 that permits workers to work remotely or relocate within the US with out a change in pay, Airbnb stated it expects to keep up a important presence in New York for years to return.
Airbnb CEO and co-founder Brian Chesky stated the company’s new Manhattan office displays its “long-term commitment” to New York City. Bloomberg by way of Getty Images
According to the company, many of its New York-based workers desire to work from the office usually, prompting the need for a devoted worker hub.
The building was initially listed for sale in 2022 with an asking price of $135 million, in accordance with Airbnb.
The vendor, New York developer Aby Rosen’s RFR, purchased the property in 2014. According to the Journal, Airbnb’s buy price represented roughly a 63% gain over what RFR paid for the building more than a decade in the past.
RFR was represented by Bernadette Brennan and Ryan Serhant of Serhant in addition to by Avison Young’s James Nelson, Alexandra Marolda, Brent Glodowski and Lea Voytovich.
Built in 1894 and renovated in 2019, 281 Park Ave. South beforehand figured into one of New York’s most infamous current fraud instances.
Anna Sorokin, who posed as rich German heiress Anna Delvey, allegedly used solid financial paperwork whereas trying to lease the building for a personal members’ membership.
The project by no means materialized, and Sorokin was convicted in 2019 of defrauding banks, resorts and different companies.
