Bank of New York takes over at IDCNY

Real Estate Weekly, Dec 25, 1991 by Lois Weiss

Bank of New York takes over at IDCNY

Sources report that the Bank of New York has taken a deed in lieu of foreclosure on the Long Island City International Design Center. What this means to the tenants is the beginning of a workout situation in which the bank will probably manage the property until it can be sold.

The $150 million project was developed by Lazard Development Corporation, a subsidiary of Lazard Freres, and is owned by Thomrock Realty. General partner, Harvey Shulweis, declined comment. The two-building-plusparking lot combination is set on 10-acres. The IDCNY opened in 1985 to great fanfare, and was leased out primarily to contract trade showrooms which carry office furniture and accessories sold through designers. Space has since been leased to New York City agencies and other businesses.

"There were problems filling the space in the beginning and many rental concessions at the time," said one interior designer familiar with the project. "People who work there go nuts when they have an appointment in the city. It kills the whole day."

In the same way, it is difficult for designers to get to the IDCNY building from the city. Cab rides over the snarled 59 Street Bridge, virtually at the center's doorstep, are lengthy. A shuttle bus run from the Architects and Designers Building at 58th Street and Third Avenue was not always the answer for transportation as it too was reliant on the bridge. A proposed subway stop was recently eliminated from the MTA master plan for the area.

In November, Schulweis said 750,000 of the total 950,000 square feet was occupied. The School Construction Authority, which occupies 150,000 square feet, was recently accused in legal actions by other tenants of "hogging" parking spaces.

Plans were recently announced for the New York Resource Center, a 650,000-square-foot competing project at a more accessible site in Manhattan. The former B. Altman's building at Fifth Avenue and 34th Street.

It seems the bright and airy IDCNY is more a victim of its location and outdated transportation than anything else.

"What they needed was a tram going right there," said the designer. "That would have been great."