Last piece of times square puzzle in place: Milstein Brothers break ground on new mixed-use, 850,000 SF office tower

Real Estate Weekly, Oct 30, 2002 by Elaine Misonzhnik

Last week, the Times Square area saw its final redevelopment project take its place--the land between the Westin Hotel at 43rd Street and the New York Times headquarters at 41st Street will now be filled by the Milstein Brothers' new mixed-use building. Containing 850,000 SF, Times Square Plaza will feature approximately 800,000 SF of office space, several levels of retail, some luxury apartments, and a parking garage.

Speaking at the groundbreaking ceremony, Howard Milstein called the project an expression of his family's dedication to New York.

"Now we stand at the groundbreaking of a new investment in our city," he said. "A building that will be the capstone of the incredible renaissance of Times Square and the West Side that symbolizes the bright future of New York."

The Milsteins have been trying to make use of the land on Eighth Avenue, between 41st and 42nd Streets for almost 20 years. After buying an abandoned parking lot for $5 miflion in 1983, they planned to develop a large office tower, but faced difficulties resolving family problems.

Now, both the Empire State Development Corporation and Governor Pataki are thrilled to see their Times Square vision completed.

"This exciting new complex will not only anchor growth along Midtown Manhattan's West Side for decades to come, but it reaffirms the Times

square district as a dominant economic hub vital to the city's future, "said Pataki. "It is clear that the Times Square Plaza will create jobs and new investment."

Charles A. Gargano, chairman of the Empire State Development Corporation, said that developments such as Times Square Plaza "will continue to have a positive effect on the city and the state's economy in the years and decades ahead."

According to the developers, the new building will be completed in 2004, but the ratio of commercial to residential space may change according to market conditions. If Milstein Brothers will have a hard time finding office tenants, they will simply concentrate more on residential use. However, Howard Milstein expressed confidence that the building's location will guarantee its success.

"What better place to build than at this street corner of incalculable human energy?" he noted. "It sits astride the 42nd Street stations of the IND, IRT, and BMT subway lines, it has the nation's busiest bus terminal across the street, and is within hailing distance of revitalized commuter ferries to New Jersey."

Fow & Fowle will serve as the architect for the building. MB Real Estate is the leasing agent.