Cushman & Wakefield announced today that it has been appointed by Africa Israel (AFI-USA) and Five Mile Capital to market the 250,000 square foot retail condominium unit at 229 West 43rd Street. Once home to the prestigious New York Times, the retail unit has been redesigned – with a more than $50 million investment – into a one-of-a-kind, urban retail center in the heart of Times Square.
Located on a through block lot between 43rd and 44th Street and Seventh and Eighth Avenues, and at the entrance to the famed Shubert Alley, the retail unit also provides investors with the elusive blend of stable, core cash flow and a significant opportunity to further add value through additional leasing.
A Cushman & Wakefield New York Capital Markets team of Helen Hwang, Nat Rockett, Karen Wiedenmann, David A. Green, Gideon Gil and Brian Szczapa are marketing the site on behalf of AFI-USA and Five Mile.
“229 West 43rd Street has been stunningly transformed into one of the largest retail centers in Manhattan, one that is like none other in the City,” said Hwang, executive vice president. “It also offers an amazing springboard for a new buyer to complete the vision for the property as the premier destination in one of the most critical markets in the world.”
A 210,000 square foot portion of the property fronting the 44th Street side of the building is substantially leased by recognizable tenants with an average remaining lease term of 18 years. In contrast, the property’s 43rd Street frontage offers nearly 35,000 square feet of available, multilevel space in one of the most sought after retail locations in the world. This distinction in income profile also creates the potential to further separate the property into two sub-condo units.
Activity at the property has experienced a significant uptick evidenced by two recently completed leases: Guitar Center for 28,000 square feet and Haru Sushi for 5,300 square feet. The property has received increased interest from potential tenants as a result of a scarcity for large format retail and entertainment space in a location that has such a vast global tourist appeal.
Improved interest also comes at a time when Equity Office continues to renovate and lease its office condo unit on the upper floors of the building, including an 180,000 square foot lease with Yahoo! completed in the middle of 2013, adding to the employment population directly on West 43rd Street.
The property, which features multi-level spaces on the lower six floors of the building are equipped with dedicated vertical transportation and is currently occupied by well recognized brands including the Discovery Times Square Exhibition, Guy’s American Kitchen, the Jekyll & Hyde Club Restaurant & Bar and Bowlmor Times Square. Given the tenant profile of the building, it has become a sought after tourist attraction in one of the most visited destinations in the world.