Development The Third Avenue Transit Corporation sold off ten plots at auction in November 1946, including the car barn on the block bounded by Second Avenue, 65th Street, Third Avenue, and 66th Street. The New York Life Insurance Company bought the 66th Street site for $1.6 million, beating out bidders that included a film studio. New York Life quickly announced plans for a moderate-income apartment complex on the site; it planned to rent out the rooms for $50 per month. In addition, New York Life leased a site immediately to the south, which it originally planned to use as a parking lot. New York Life took title to the site in August 1947 and immediately began demolishing the car barn, a process that was planned to take four months. Because insurance companies at the time were restricted from developing certain types of housing in the city, New York Life planned a limited-
dividend development. New York Life hired SOM and Mayer & Whittlesey as architects for the project. and it was to be flanked by gardens on 65th and 66th Streets. The company also proposed a public parking garage on the block immediately to the south, with 1,400 to 2,000 parking spaces, and it planned to donate some land along 66th Street to the city government, allowing that street to be widened. Mayer & Whittlesley and SOM submitted plans for the development to the
New York City Department of Buildings in January 1948, which mayor
William O'Dwyer ultimately halted in August 1948. Later the same month, New York Life announced that it had postponed the planned apartment building indefinitely because of rising construction costs; the company would instead use the site as a 500-space parking lot. New York Life announced in April 1949 that the general contractor, Cauldwell-Wingate Company, would immediately begin constructing the building, which was to be known as Manhattan House. The development was originally expected to cost $11–14 million. and workers began pouring the concrete floor slabs that August. but a court subsequently halted these plans. and New York Life displayed a "model apartment" at the building the next month.
New York Life ownership The first residents began moving into the building at the beginning of October 1950. The apartments were rented at 22 different prices; the cheapest apartment cost $95 per month, while the most expensive penthouse cost $750 per month. There was even high demand for parking spaces in the building's garage, which cost $35 per month and had a waiting list by 1952. Through traffic on 66th Street began traveling westbound, but the
service road in front of Manhattan House still carried eastbound traffic. New York Life extended the service road to cover the entire block, making that segment of 66th Street a two-way road, and installed two
U-turns in the median to allow westbound vehicles to access the building's service road. After the
New York State Legislature passed the Rent Stabilization Law of 1969, all the apartments were protected by
rent regulation or rent control. Manhattan House remained an upscale development in the 1970s; at the time, the average monthly rent was $1,000, and the building employed 132 people.
The New York Observer reported that one potential resident during the 1970s, a producer for
NBC "recalled wearing white gloves to the interview and answering questions about her parents' background despite having long established her own career—and a years-long wait list". New York Life officials said they were replacing all 6,800 windows to save energy and to prevent them from unintentionally opening due to high winds. Local civic group Friends of the Upper East Side Historic Districts began advocating for the LPC to designate Manhattan House, as well as two other post–World War II structures on the Upper East Side, as official city landmarks in 2002. At the time, a spokesperson for the group said the three buildings'
modern-style designs "did want to stand out. That is what made people hate it. But it is an important part of our collective history."
Sale and condominium conversion By mid-2005, New York Life was planning to sell Manhattan House for as much as $600 million amid an increase in real-estate prices during the
2000s United States housing bubble. The company reportedly received offers from investors such as
Yair Levy and
RFR Holding. Around October 21, 2005, or $625 million. At the time, about half of the building's tenants were protected by rent regulation or rent control and paid $1,800 per month. The remaining residents were paying
market rates of up to $20,000 per month; their units had been deregulated because their pre-existing monthly rent had been over the then rent control threshold of $2,000. Kalikow justified the high purchase and conversion price by saying that the East Side contained a shortage of upscale condos. Unlike typical condo conversions, where developers paid for the projects with their own money, the partners raised money for the project from
capital calls. and many residents, who were largely rich and elderly, were moving out by early 2006. Existing tenants claimed that O'Connor and Kalikow had refused to renew their leases, had increased their rent significantly, and were harassing them with loud construction noises. These tenants also alleged that the men were offering a lower-than-normal "insider's discount", compared with condos of similar size, to existing residents who wanted to buy condos. One resident claimed that her grandfather had died because of the stress associated with being evicted from the building. Other residents claimed that the building suffered from rat infestations, flooding, and
unlawfully high accumulations of asbestos.
Revised offering plan O'Connor's company, O'Connor Capital Partners, submitted a revised offering plan in October 2007, The revised offering plan indicated that the condos would be sold for a total of $958 million; in addition, the discount for existing residents was increased from 15 to 25 percent. He obtained a $750 million loan for the building from German bank
HSH Nordbank; and sales of condominiums began the next month. O'Connor wished to sell the building's retail space for $100 million by March 2008, and the attorney general's office declared the offering plan to be effective in August 2008. at the time, stores such as
Aldo,
Club Monaco,
Lululemon Athletica, and
Staples Inc. occupied all of the retail space. Corcoran Sunshine Marketing Group was hired as the project's new broker in early 2009, replacing Prudential Douglas Elliman. By then, 140 buyers had signed purchase contracts, and about 60 buyers had finalized their contracts. Ultimately, O'Connor Capital Partners spent $1.1 billion on the conversion, By 2010, there was again increasing demand for condos at Manhattan House. To accommodate these increases in demand, O'Connor started selling several larger apartments, At the same time, O'Connor was still involved in a lawsuit with 35
holdout tenants, who still occupied rental apartments. In 2014, Madison Capital and
JPMorgan Chase sold the retail space to German firm GLL Real Estate Partners for $110 million. The same year, O'Connor began selling the penthouse apartments (which had remained previously unsold) after Vicente Wolf had renovated them. The same year, Manhattan House surpassed $1 billion in total condominium sales, with 69 percent of the units sold. == Notable tenants ==