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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

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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.

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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.

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30 West 21st Street, 11th Floor, New York, NY 10010                    T +212 554 3700                info@continuumcompany.com                press@continuumcompany.com