La Salle Partners selected as 42nd St. development consultant

Real Estate Weekly, May 4, 1994

Mounting entertainment and retail interest in the 42nd Street Development Project has led to the designation of La Salle Partners as a financial and real estate development consultant to the project.

Vincent Tese, chairman and chief executive officer of the New York State Urban Development Corporation, announced the approval of La Salle and attributed the intense interest to three recent developments: the Walt Disney Company's commitment, in February, to restore and renovate the landmark New Amsterdam Theater as a home for Disney productions; the 42nd Street Now! plan designed by Robert A.M. Stern, released last September; and New York City's commitment of $35 million to acquire Site 7, at the northeast corner of 42nd Street and Eighth Avenue.

The 42nd Street Development Project, a UDC subsidiary, is in partnership with the city on the project.

In May, UDC and the New York City Economic Development Corporation expect to issue a request for proposals for the development of Site 7 for hotel and retail uses. La Salle's Hotel Group will assist with soliciting and evaluating the proposals, with the securing of a Letter of Intent and designation of a developer scheduled for the Fall. The hotel/retail development calls for the construction and operation of a tourist and/or convention hotel of up to 1,000 rooms and 28,000 square feet of restaurant and food services, ballroom and function facilities of up to 98,000 square feet and 100,000 square feet of retail space.

La Salle Partners, the international real estate services firm responsible for the successful transformation of the Union Station in Washington, DC into a retail center and food court, was recently selected as consultant on the $100 million Grand Central Station architectural restoration that will also create additional retail space. The international company's services include development, managing and leasing of large-scale commercial and hotel properties. It also specializes in long-range strategic and financial real estate planning.

"Each day, we see a renewed affirmation of our belief that 42nd Street will come back as an exciting and innovative tourist attraction," Tese said. "By adapting our project plan to the realities and demands of today's market, we are setting the stage for the entertainment market of the 21st Century."

At the center of the 42nd Street Now! plan is the restoration of the nine historic theaters lining 42nd Street between Seventh and Eighth Avenues. Earlier this month, the new 42nd Street, a non-profit corporation establish ed in 1990 to administer the restoration and programming of six of the theaters, began its $9.2 million renovation of the Victory Theater.

"We are now on the road to bringing 42nd Street back to its glory days," Rebecca Robertson, president of the 42nd Street Development Project said. "When our project is completed, 42nd Street, from river to river, will be an outstanding example of both urban design and the excitement of the urban experience."

"The city is pleased to further the momentum that is building on 42nd Street," Clay Lifflander, president of the New York City Economic Development Corporation said. "We look forward to working with UDC and La Salle to bring the finest from the private sector on board at this exciting and crucial stage in the project."

"La Salle Partners is excited to be involved in the 42nd Street Development Project," said Robert F. Works, a managing partner. "Our New York offices are located on 42nd Street. We now have the opportunity to contribute to the successful selection of the developer for this project anchor. In 42nd Street and Grand Central Station, New York City has two of the world's great crossroads. We are proud to be affiliated with both."