The LV was one of several freight railroads that operated within the
Port of New York and New Jersey; these railroads carried about two-thirds of the port's freight tonnage during the early 20th century. Nearly all of the freight railroads in the area terminated in New Jersey, on the western shore of the Hudson River, and barges were used to carry freight to Manhattan, on the eastern shore. Among these was the LV, which used car floats to transport freight from its terminal in New Jersey to a dock on 27th Street. To accommodate high freight and industrial demand, several railroads had built
rail freight terminals on the Manhattan side of the Hudson River, and many freight terminals and warehouses were built in the western part of Chelsea by the late 19th century. The first of these was the Central Stores, constructed immediately to the north of the Starrett-Lehigh site in 1891. By the early 20th century, the
West Side of Manhattan was heavily congested because of the tangle of street-level passenger and freight trains on the
West Side Line, cargo unloading from the busy
Hudson River piers, and the lack of suitable
warehouse facilities. Freight operations on Manhattan's far west side were improved when the elevated
West Side Freight Line and the
West Side Elevated Highway were built in the 1930s, replacing a surface-level railroad and roadway. He planned to build a 12-story warehouse on the site, The Thirteenth Avenue and West Twenty-sixth Street Corporation acquired the city block that April and hired the
George A. Fuller Company as the main contractor. The LV announced in April 1929 that it would occupy the new warehouse, which would cost $10 million and was to be called the Lehigh Valley Terminal Warehouse. The railroad had already leased the ground floor of the facility, which was to include space for 54 railroad cars; 72 vehicular loading docks; and a driveway connecting Eleventh and Twelfth Avenues. The rest of the building would have of office space. In addition to the Fuller Company, architecture firm Wescott & Mapes and construction engineer Alexander D. Stark would have been involved with the project. The 15-story building was to contain about of space above the LV's existing tracks, as well as truck elevators serving each floor. Starrett Brothers would construct the building, while Russell G. Cory had been hired to design the edifice, which was to have a facade largely made of glass. The LV retained ownership of the ground level, and
Gimbel Brothers had already agreed to lease on the upper floors. The LV submitted plans to the
New York City Department of Buildings for an 18-story edifice in July 1930, at which point excavations at the site were underway. Although a fire on the 18th floor at the end of that month caused an estimated $150,000 in damage, Colonel
William A. Starrett, head of the Starrett Brothers, said at the time that the completion of the Starrett–Lehigh Building and other West Side freight terminals would reduce freight congestion and turn Manhattan's West Side into an industrial hub. The cost of construction increased unexpectedly due to the difficulties of erecting the foundation, which had forced the architects to modify their plans to an 18-story building. The final cost was estimated at between $6.37 million and $10 million.
Industrial use Opening and early years |alt=View of the Starrett-Lehigh Building as seen from Hudson River Park to the west. The building has a brick facade with large glass windows. The building was substantially completed on October 1, 1931, and members of a local civic group, the 23rd Street Association, toured the edifice the next month. The structure officially opened during the first week of December 1931. Early tenants included trucking firm W. C. Mulligan & Co., and sales representatives William Iselin & Co., the Westminster Tire Company, the Gimbel Brothers, and various food and wine distributors. In addition, architect
R. Buckminster Fuller lived on the building's top floors. After William A. Starrett died in March 1932, the LV bought the building outright that June, assuming the $4.5 million mortgage. This allowed the LV to retain the land while continuing to earn income from tenants. The railroad had bought the Starrett–Lehigh Building at a discount; although the building had been valued at $8 million, the railroad had only taken over the mortgage without paying any cash. The building was not immediately financially successful for several reasons, including declining demand for warehouse space during the
Great Depression; the high cost of construction; and direct competition from the Port Authority Building, which rented space at lower rates. The construction of fixed crossings across the Hudson River, namely the
Holland Tunnel,
Lincoln Tunnel, and
George Washington Bridge, also contributed to reduced demand for the Starrett–Lehigh Building, which relied mainly on business from car floats. At the time, the building was about 55 percent occupied, with 90 tenants. Friedus and his partners obtained a $3.75 million mortgage for the building in July 1945, and
Harry Helmsley began managing the building in 1946. Several newspapers profiled Friedus in detail after he purchased the Starrett–Lehigh Building; the large amount of media coverage prompted the
Internal Revenue Service to investigate him, and the IRS prosecuted Friedus in 1949 for
tax evasion. Occupancy peaked in the 1940s and early 1950s, when over 5,000 people worked in the building. Many of the companies with offices in the building were printers. and the railroad tracks were removed in either 1956 including a subsidiary of
Genesco. The building also attracted companies such as
Hearst Communications' magazine division and
Ilford Photo during that decade. Friedus refinanced the Starrett–Lehigh Building in 1968, taking out a $9.8 million first mortgage and a $1.2 million second mortgage from the
New York Bank for Savings. He received a third mortgage of $1.3 million in 1973, by which point only about 2,000 people continued to work at the Starrett–Lehigh Building amid a decline in demand for loft space in Manhattan. slightly higher than the 30–35 percent vacancy rate across Manhattan's 4,200 loft buildings. He bid $2.21 million, beating out the company that had foreclosed on the building by $10,000. Helmsley wanted to renovate the structure "to make it once again a first‐class manufacturing and warehouse facility". Mayor
Abraham Beame proposed that the vacant space be leased to garment manufacturers, but many garment firms were reluctant to relocate, as the structure was far from Manhattan's
Garment District. By the end of the decade, vacancies had declined to 20 percent, and most tenants were using the building as a warehouse. The Starrett–Lehigh Building was fully occupied in the early 1980s. Several large tenants had gone bankrupt during the
early 1990s recession, while other tenants (mainly in the printing industry) had been disadvantaged by the increasing popularity of computers and photocopy machines. The building was 30 to 40 percent vacant by the early 1990s. The 12th and 14th floors were divided into spaces covering , which were rented to art galleries. Rents remained low, averaging . One tenant at the time characterized the building as having "virtual shantytowns" with dozens of
squatters.
Conversion to office building Sale and renovation A group of investors bid $152 million for the building at an auction in June 1998. Among the new owners were Mark Karasick, as well as
David Werner and
First Boston. they intended to re-rent the building's space at . To attract tenants, the owners also added a ground-level food court and evicted a diner on 12th Avenue to make way for an upscale restaurant. The new owners rented the space for , Media firms and art galleries began replacing the industrial tenants, and many photography studios, which had moved into the building in the mid-1990s, were forced out. By 1999, the owners had leased out and were in the process of leasing out another 500,000 square feet. As demand for office space increased, the owners relocated or bought out the leases of many small tenants, allowing larger tenants to rent large amounts of space. By the early 2000s, tenants had expressed dissatisfaction over the building's dilapidated condition and the lack of a nearby subway station. A quarter of the building, , was vacant by 2003; Gramercy Capital also placed a $38.7 million
mezzanine loan on the building, and
SL Green Realty took over the mezzanine loan in 2010.
RXR ownership In April 2011, a joint venture between Mark Karasick and
Douglas W. Shorenstein's firm
Shorenstein Properties agreed to sell the Starrett–Lehigh Building to
Scott Rechler's
RXR Realty for $900 million. At the time, the building's tenants included Martha Stewart Living Omnimedia, advertising agency
McGarryBowen, and several fashion companies; In part because of the development of the nearby High Line park, a wide variety of residential and commercial tenants had begun to move into the area, and, as such, RXR wished to attract more retail and office tenants. The sale was finalized in August 2011 for $920 million. Rechler announced plans to spend $50 million on renovating the lobby, as he believed that the upcoming
7 Subway Extension to
34th Street–Hudson Yards would increase the area's desirability. RXR also rented the building's space out for as high as . A vice president for the company said: "There were tenants in there that were enjoying a much lower rent than what the market bears now." RXR replaced the mechanical systems and many of the windows during the 2010s. Because of a shortage of restaurants in the area, in 2012, RXR began operating a "food truck court" for employees and visitors on the upper floors during weekdays. The building was nearly fully occupied by the mid-2010s; through the end of the decade, many of the tenants were fashion companies. RXR sold a 50 percent stake in the Starrett–Lehigh Building and five other properties to
Blackstone Inc. in early 2015; the sale valued these structures at $4 billion. The owners also spent $23 million to replace the building's windows with more energy-efficient units, RXR refinanced the building in September 2018 with a $900 million loan originated by
Morgan Stanley and
New York Community Bank. The same year, RXR hired the firm
ICRAVE to design of exposition space in the building, including an food hall. The project involved adding of retail space and of event space. The food hall was leased in 2020 to Chicago-based company 16" on Center, and RXR leased one of the storefronts to chef
Marcus Samuelsson in 2021. with 11 food stalls. The building hosted many arts and fashion tenants by the 2020s, ==Notable tenants==