ABC lease completes turnaround at 1500 Broadway in Times Sq.

ABC's leasing of approximately 75,000 square feet of retail and office space comprising the first four floors at 1500 Broadway culminates a remarkable real estate turnaround for a Times Square property that was languishing in foreclosure just two years ago.

"The building has probably tripled in value since we purchased it in 1995," asserted Orna L. Shulman, executive vice president, general counsel and director of Intertech Corporation, a wholly owned subsidiary of Zapco Holdings, Inc. "And with the addition of ABC and its television studios, the property is now positioned to take its rightful place as the newest jewel of Times Square -an important destination showcase for the entire Broadway corridor."

The dramatic transformation of this imposing 34-story, half-million square-foot office/retail tower occupying the entire easterly blockfront of Broadway, between 43rd and 44th Streets, has been accomplished in a surprising short period of time. Since acquiring the building, Shulman has spearheaded an aggressive renovation and repositioning of the property that has pushed occupancy rates to over 97 percent. More than 30 new leases, renewals and expansions have been completed, and the Broadway tower now houses a prestigious roster of media and entertainment companies including Edelman Public Relations Worldwide, Essence Magazine, and the Screen Actors Guild.

ABC will now establish a major presence at the property, according to Robert A. Iger, president of ABC, Inc. Dubbed "ABC Times Square," the site will serve as a television and entertainment facility and house a variety of ABC operations. The expanded presence will be anchored by a live, daily, two-hour broadcast of Good Morning America. Construction of a 35,000 square-foot themed restaurant, "ESPN Grill," is also under consideration.

Built in 1972, 1500 Broadway was one of the first modern post-war office towers to rise in the Times Square area, but it eventually fell on hard times.

When Intertech acquired the building in foreclosure in late 1995, it was beset with problems, including outdated mechanical systems, faulty elevators and 65 unhappy tenants who had been hostile to the previous owner and were skeptical about the new one.

In rapid order, Intertech renamed the building Times Square Plaza at 1500 Broadway and instituted a major $3.5 million modernization and capital improvement program. It also made a concerted and remarkably successful effort to change the building's atmosphere and establish good relationships with its tenants.

"This is a true Cinderella story," said Shulman, who noted that since the acquisition, not only has the building's occupancy rate risen substantially, but perhaps more significant, tenant retention has improved dramatically. "Once existing and potential tenants recognized the owner's commitment, major renewals and expansions followed and the turnaround of this building was imminent."

Recent improvements at the tower include new heating and air-conditioning systems; replacement of the elevators' mechanical systems and the refurbishment of cab interiors; upgrading of hallways and common areas; replacement of all the building's lighting fixtures; the installation of a closed circuit television system, which monitors areas inside as well as outside the building; and a new messenger center.

Outside, Rainbowvision is presently erecting the framework for a giant video screen on the building's seventh floor setback, which will resemble the Panasonic and Concorde signs in Times Square. Additional outdoor signage is also being planned at 1500. which until now has been the only major Times Square property without such adornment.

Intertech recently appointed Cushman & Wakefield the exclusive leasing and managing agent for Times Square Plaza at 1500 Broadway.