Steel goes up at 11 Times Square

New York /
Apr.April 09, 2008 05:48 PM

Iron workers began assembling a steel frame in Times Square today for the largest speculative development under construction in Midtown Manhattan.

SJP Properties is building the 40-story, 1.1 million-square-foot commercial and residential tower at 11 Times Square. The $1.2 billion project is expected to be completed by January 2010.

John Cicero, a principal at commercial real estate appraisal firm Miller Cicero, said it seemed daring to build new office space on-spec as the economy weakens and worry spreads on Wall Street.

“In a market where there is talk about significant job losses in the financial sector, which will ripple through the economy, I think putting up a building without any major tenant would be risky,” he said.

The steel frame’s construction is a milestone, Cicero said.

“Certainly once you’ve got your skeleton up there is no turning back,” he said.

He estimated that a building that size would hold about 5,000 employees, but he did not anticipate them coming from new job creation.

“I am sure they would just be relocating from other areas,” he said, adding that over the past few years very few big office buildings had been built in the city.

SJP Properties chairman and CEO Steven Pozycki made a similar point, telling The Real Deal for this month’s issue that aging buildings would drive demand for Class A offices.

“When we got going on this about two years ago, the office market was tightening up substantially … (but) it is still probably the tightest it’s been in at least my 25 years of observing it,” he said.

The building, located at 42nd Street and Eighth Avenue, will seek Leadership in Energy and Environmental Design (LEED) certification from the U.S. Building Council’s rating system for green buildings.

SJP Properties is also developing two luxury condominium projects nearby, a 21-story high-rise at 45 Park Ave. in Murray Hill and a 42-story tower at 46th Street and Eighth Avenue.

The company broke ground on 11 Times Square in June 2007.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
RXR Realty's Scott Rechler with 75 Rockefeller Plaza (Getty, David Shankbone/Wikimedia)
RXR Realty serves American Girl with a lawsuit
RXR Realty serves American Girl with a lawsuit
SL Green's Marc Hollday, 635-641 Avenue of the Americas, Infor's Kevin Samuelson. (Infor, SL Green)
Software company Infor renews 90K sf Chelsea lease
Software company Infor renews 90K sf Chelsea lease
626 Lafayette Avenue in Bedford-Stuyvesant and 23-14 96th Street in East Elmhurst (Google Maps)
Two landlords hit with big fines for SROs, resi additions
Two landlords hit with big fines for SROs, resi additions
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
RGB chair David Reiss (iStock, Brooklyn Law)
City board casts preliminary vote in favor of rent hike
City board casts preliminary vote in favor of rent hike
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...