NACORE examines retail/entertainment developments.

Ambitious development projects at Times Square and on East 57th Street will make New York City an even better and more exciting place to live and visit, according to guest speakers at a recent NACORE New York City Chapter luncheon meeting.

The speakers were several of the key players involved in the revitalization of Times Square and the changes in the retail landscape of East 57th Street: Charles Millard, president of the New York City Economic Development Corporation (EDC); Franklin E. Dickinson, AIA, project director for Louis Vuitton Moet Hennessy; and Joseph J. Simone, president and CEO of Tishman Real Estate Services Company. The moderator of the discussion was T.J. Russo, a senior portfolio director in the Corporate Equities Group of Chase Manhattan Bank.

Millard, appointed head of EDC by Mayor Rudolph Guiliani in 1995, described "the urban alchemy on 42nd Street" as a wonderful transformation that will put business back on track. He pointed to the presence of Disney, Captain Marvel, Madame Tussaud and other entertainment wonders as a outcome of the public/private partnership that has been forged through business and tax incentive packages, a sea change in economic development approaches under Mayor Guiliani.

On 57th Street, between Fifth and Madison Avenues, retail development advances at a brisk pace. Louis Vuitton Moet Hennessy (LVMH), the largest French company on the French Stock. Exchange, is building its new headquarters building on the north side of East 57th Street. The new flagship store will house all of the sister companies of the LVMH conglomerate under one roof for the first time, according to Dickinson.

Dickinson, who is responsible for store planning, design and development, described the block as a center of style and fashion, "one of the most eclectic shopping centers in the world... where the diversity of the tenants will increase business for everyone." He noted that, "Louis Vuitton, Nike, Warner, Chanel and Burberry coexist here because they all have a world class image."

Simone, president and CEO of Tishman Real Estate Service Company, is overseeing all facets of leasing for the first phase of E Walk, a $300 million Times Square entertainment/retail/hotel development at 42nd Street and Eighth Avenue. Simone highlighted several appreciable reasons why Tishman has invested in the area: demographics, corporate movement into the area, and aggressive city and state incentives.

"We believe Times Square will be the most popular retail entertainment street in the world," said Simone. E Walk, an 850,000 square-foot complex being built by Tishman Realty and Construction Co., is a vital component of the publicly-sponsored $2.5 billion 42nd Street Development Project, the largest ever jointly undertaken by New York City and New York State. The master plan comprises 13 acres along the northern and southern sides of 42nd Street from Broadway to Eighth Avenue.

Demolition of existing buildings and excavation for Phase I is slated to begin this month, and the opening of the development is scheduled for Fall, 1998. Phase II of E Walk will include a 45-story hotel with 860 rooms, slated for a construction start sometime in the next 24 months.

"We are spending a great deal of time ensuring that the mix of tenants is the most attractive for New Yorkers and the 25 million visitors who come to Times Square every year," Simone told the NACORE audience, many of whom are members of the commercial brokerage industry.