London Terrace was the dream of real estate mogul Henry Mandel, a flashy developer who was the Donald Trump of his day. In the late 1920's, when the American economy was still strong, Mandel began acquiring land in Chelsea on which to build the largest apartment building New York, and the world, had ever seen.

By 1929, he owned the city block bounded by Ninth and Tenth Avenues and 23rd and 24th streets. The land was once owned by Clement Clark Moore, who wrote 'Twas the Night Before Christmas, and was located across from fashionable "Millionaire's Row". Mandel hired the architectural firm of Farrar & Watmaugh to design the massive complex, which was built in two phases. The central structure, comprised of ten adjoining buildings, was completed in 1930. Later, the four corner structures were added. The complex contained 1665 apartments comprised of 4,000 residential rooms. Mandel's dream, however, was grander still.