One Broadway Place
1540 Broadway
New York, NY
THE STORY:
Turned the last potential assemblage in Times Square with an 18 FAR -- the highest density permitted in the city, into a 44 story architectural icon offering Class A office space, a 5-story retail experience and parking garage.
​
44 STORIES
BUILT 1990
CLASS A OFFICES
5-STORY RETAIL ATRIUM
KEY DETAILS
Total Cost: $280 Million
Total Gross Sq Ft: 1.1 Million
​
USES:
​
-
900,000 sq. ft. of office space
-
150,000 sq. ft. of retail space anchored by movie theaters
-
50,000 sq. ft of parking below grade
-
15,000 sq. ft. of exterior signage
​
AMENITIES:
​​
-
Architect: Skidmore, Owings & Merrill
​
PROJECT
CHALLENGES
-
Existing zoning was to expire in 1988 (density would decrease from 18 to 15 after the expiration). Therefore acquisition, financing and foundation construction had a limited time frame.
​
-
Existing office and retail tenants needed to be vacated from the existing building in order to proceed with the demolition.
​
-
Existing zoning required a certain percentage of billboard-style signage be placed on the exterior of the building.
​
-
Development concept included 5 levels of retail podium, a major portion of which was below grade.
​
-
The concept of an indoor, vertical, retail space, partially below grade, was considered extremely speculative. Banks were unwilling to finance this type of project without a tenant in place and, in addition, were extremely skeptical about the viability of a below grade vertical mall.
​
-
Competition for office space from Midtown East buildings made the proposed $40 psf questionable.
​
-
Core acquisition price made the economics of the deal challenging.
OUR SOLUTION
-
Accelerated the pre-development and permitting schedule in order to take advantage of the existing higher density.
​
-
Implemented existing demolition clause in existing office and retail tenant leases in order to vacate the building.
​
-
Developed incentive package for one restaurant tenant, not subject to the demolition clause, and agreed to put them back into the new development.
​
-
Negotiated net lease with a national retail REIT for vertical retail space in order to shift leasing risk and make the project finance-able.
​
-
Added 300,000 square feet to the development by procuring unused development rights from an adjoining landmarked theater and building five levels below grade.
​
-
Succeeded in securing an amendment to the existing zoning law, significantly increasing the scope of large-scale exterior signage to be placed on the exterior of the building. This significantly increased advertising revenue of the development.
​
-
The additional income from the below grade retail and the exterior signage made it possible to offer below-market leases to attract office tenants.
