Toy giant coming to Time Sq

Real Estate Weekly, August 9, 2000 by Natalie Keith

Toys 'R' Us will be district's largest retailer

Toys 'R' Us plans to locate its flagship store in Times Square, under a 101,000-square-foot lease deal that is being called one of the largest retail transactions completed this year, store officials announced recently.

Toys 'R' Us is planning to open the store in 2001 at the east corner of Broadway and West 44th Street in the historic Bowtie Building, former location of the Roundabout Theater. The three-story, glass-enclosed store will feature a 60-foot indoor Ferris Wheel and will be the largest toy store in the world, according to store officials.

"This store is going to be unlike anything the world has ever seen," said Mike Shannon, President of Logistics and Administration for Toys 'R' Us.

C. Bradley Mendelson, David Green, and David LaPierre of Insignia/ESG's Retail Group arranged the lease between the store and Bowie Building owner Charles Moss Jr. Moss reportedly rejected a $92 million deal two years ago to allow Random House to build an office tower over his storefronts, saying support columns needed for the tower would reduce the amount of retail space.

"There is really no other property in Manhattan like the Bowtie Building," Mendelson said. "The location enjoys tremendous foot traffic. Couple that with the unique 30-plus-high column-free spaces, and you have a spectacular retail venue."

The store will be the largest retail outlet in Times Square, one-third larger than the Virgin Megastore a block to the north. It will sit opposite the MTV music studios and ABC-TV's studios for "Good Morning America."

With 1.5 million pedestrians passing through Times Square every day, the store expects to draw more than 20 million visitors a year. The store is also hoping toy manufacturers introducing new products will be drawn to the site in the same way music groups introduce new songs at the MTV studios.

Bringing the flagship store to Times Square is part of a campaign to regain the store's top position among toy retailers, which Toys 'R' Us lost to Wal-Mart two years ago, store officials said.

Toys 'R' Us has not yet announced what the company is planning to do with its 90,000-square-foot store in Herald Square.

Times Square Business Improvement District Brendan Sexton said the Times Square business community is thrilled with the new store, saying it solidifies the neighborhood's new family-friendly image.

"We're just so happy to have attractions for young people and families. This will make it clear that Times Square has made the transformation," Sexton said.

Sexton added that Times Square business owners and residents would like to see more retail development. After the new office buildings that are being built are fully occupied, more than 250,000 people will work in the Times Square area. While there are theaters, restaurants and other attractions in the neighborhood, retail development is limited.

"We have a small city working in this area and workers would love to be able to shop after work," he said.

Although he acknowledged that high rents -- as much as $300 per square foot in some locations -- may be keeping retail tenants away, he said there were sites on the side streets and Eighth Avenue that would be good for retail development, he said.