Related companies announces $150M development in Union Square.

The Related Companies, L.P., a fully integrated national real estate firm, announced that it will begin construction on a $150 million mixed use development in the heart of the Union Square neighborhood in September.

The new development, called Union Square South, encompasses an entire square block between 13th and 14th Streets, and Broadway and Fourth Avenue. The 21-story building's exterior will be highlighted by a unique accent - an original 100[feet] tall by 60[feet] foot wide artwork commissioned especially for this development. The artwork is one of the most significant cultural features added to Union Square since construction of the park itself, and will be visible all along Park Avenue South.

Located at the terminus of Park Avenue South, Union Square South will anchor the Avenue's southern end as the MetLife Building anchors the northern end at 42nd Street. In a unique partnership, The Related Companies, the project's developer, and the Municipal Art Society, joined forces to select an architectural firm to capture the site's unique attributes, namely, its axial relationship with Grand Central Terminal and backdrop for Union Square Park. Through a design competition, architects Davis Brody & Associates and Schuman Lichtenstein Claman Efron Associates were selected. The design includes a glass and metal base, which will house three major retailers and a movie complex, as well as a residential tower comprising 240 apartments, 50 of which will be designated as affordable housing.

The 270,550-square-foot retail base of the development is 99 percent pre-leased to four national credit tenants-Circuit City, The Sports Authority, Virgin Megastores, and United Artists Theater Circuit, Inc. The retail floor plates are exceptionally large at 49,000 square feet, ensuring almost unparalleled operating space in Manhattan. The 14th Street area is one of the city's most popular shopping destinations and has experienced unprecedented retail activity during the last 24 months. The addition of these major retailers should continue the neighborhood's revival as a shopping mecca.

Perhaps the most striking feature of the new building will be a commissioned artwork designed for a 100[feet] tall by 60[feet] wide foot brick wall, comprising a portion of the building's northern facade facing Union Square Park and Park Avenue South. At this location, the artwork will form the southern terminus of the Park Avenue axis beginning at Grand Central Station.

The Public Art Fund on behalf of The Related Companies, and in association with The Municipal Arts Society, is currently completing an international competition for an artist to design the work. The selection committee received nearly 80 entries and is presently considering a short-list of prominent artists, including Roy Lichtenstein, Richard Hass and Frank Stella. By the very nature of its permanence at this prominent location, the commissioned Artwork must embody a "vision that can stimulate the imaginations of generations to come," according to the invitational's mandate. The opportunity to create a symbolic form at this central and highly visible location is one of the most exciting aspects of the project.

Jeff T. Blau, senior vice president at Related Companies, noted that national retailers are greatly expanding their presence in urban centers and Union Square is one of New York's most desirable retail locations. "Not only is this comer highly visible, but retailers will benefit from their association with this extraordinary development," Blau said. "The commissioned artwork, as well as the design of the entire structure, will enhance Union Square's image as a destination."

Union Square is one of the city's major transportation hubs and receives service from multiple bus and subway lines. The Union Square subway station, one of the busiest in the city, is currently undergoing a $38.5 million overhaul.