Coming soon to Hell's Kitchen: Studio City and 500,000 SF

Real Estate Weekly, March 20, 2002 by Parke Chapman

It's hard to typecast Studio City New York, which will rise 15 stories over Hell's Kitchen encompassing a totally self-contained movie and television studio. Nearly half a million SF of office space along with a restaurant, executive dining room, apartments and retail shops will also occupy the space.

It will be built on a site located on 11th Avenue between 44th and 45th Streets. When completed, a 722,000-SF Hollywood-style lot will rise from a 92,889-SF footprint.

"We are building a community here. Right now, in fact, we're talking to some major tenants," said Richard Benowitz, a partner at the PB Group.

The PB Group and a group of investors including Lehman Brothers, Hines and Pacifica Venture Partners are backing the as of right, $375 million project expected to be done around Thanksgiving 2004.

Benowitz, who formed PB Group seven years ago, knows a thing or two about studios. He worked at ABC prior to entering the development arena seven years ago.

"This will be a single, all-inclusive site where content producers can go from pre- to post-production in one facility, and conveniently house their permanent business offices in the same building," he said.

Benowitz calls Studio City a "community" for a reason. Unlike studio projects of the past, this one will house myriad other uses. While the retail and commercial space will rent for longer terms, the studio space will command short-term leases.

Studio-only proposals have historically fared poorly with lenders and this is a point that another principal knows full well.

"Financing is the most difficult thing," said Lee Tomlinson, managing director of Pacifica Ventures Partners.

Tomlinson, whose enthusiasm is palpable, believes that Studio City New York will be the epitome of flexible studio space.

"This is a place where any company in the business of content creation can come. It will also be technologically driven," he said.

He also predicts the building will become the East Coast's "creative hub" for the many-layered production business. Tomlison doesn't anticipate much competition from other facilities; though he did mention Brooklyn's Silver Cup studios and some studio space at the Chelsea Piers as vying for the same business.

It is being promoted as one of the first major developments to be announced since Sept. 11, which effectively cancelled or stalled many projects.

Also being promoted is the design of the mid-rise building. It will offer some thing that few--if any--other studio buildings can: A full-acre of rooftop space on the ninth floor. Thus it will be possible to shoot outdoors here with the Manhattan skyline as a backdrop. A high-capacity forklift will even make it possible to drive cars on the elevated back lot.

The public review process has been palatable so far, with plenty of support for the project from city officials.

"The city has been terrific on this. We haven't taken any shortcuts," said Benowitz.