The Real Deal New York

Herald Center to see $50M upgrade

March 12, 2013 12:30PM

Herald Center, between Manhattan Mall and Macy’s in Herald Square, is about to get a $50 million face lift, the New York Post reported.

Owner JEMB Realty plans to replace the building’s black-tinted windows with transparent ones and put LED lighting panels on the top floors. The development company bought the structure out of bankruptcy in the late 1980s.

“This black, ugly building is going to be beautiful,” JEMB principal Morris Bailey said, adding that the property, has been “a source of frustration to us for a long time.”

The building’s anchor had been discount clothing retailer Daffy’s, now bankrupt, which Bailey described as “a long-term lease that encumbered the asset.” Daffy’s occupied 100,000 square feet of Herald Center’s 250,000 feet;JEMB bought out Daffy’s leasehold interests at several locations last summer for $43 million.

ASA College occupies floors two and three, but has agreed to move into the former Daffy’s space on floors four through seven. The school will have its own entrance on West 33rd Street.

The ASA College move along with ground-floor space — Daffy’s lobby as well as month-to-month leasers — opens up  80,000 square feet for JEMB.

The owner has hired a CBRE team led by Susan Kurland to lock down new tenants. [NYP]Christopher Cameron

  • ESBRA

    JEMB Realty talks with forked tongue. In November, 2007 Jerome said they were going to spend $25 million for capital improvements on their Herald Towers apartment building (across the street from Herald Center). To date it remains the same jettison it has always been.

    We think the $50 million upgrade of Ferdinand Marcos’ folly -Herald Center- is a marketing con to attract tenants and the upgrade will probably never materialize.

    If history repeats itself – JEMB will just try to lease out exterior space (which will cost them nothing) for tacky billboards to scrounge more Shekels.

    Fortunately they will have to get their designs – that will cheapen and degrade the look of Herald Square – approved by CB 5 and the consensus is they will not be successful.

    ESBRA