SJP's world class tower for Times Square corner.

SJP Properties has this week confirmed its acquisition of 11 Times Square--the parcel located on the southeast corner of 42nd Street and Eighth Avenue--a deal first reported in REW August 23.

It is the last remaining development site within the 42nd Street Development Project. The parcel was purchased in a joint venture with Prudential Real Estate Investors (PREI[R]) from the Millstein family, which has owned the property since 1984.

SJP plans to build a 40-story, 600-foot commercial office tower with more than one million square feet of rentable space above a three-story retail base at this site.

SJP Properties has been working with the 42nd Street Redevelopment Corporation, the Empire State Development Corporation and the New York City Economic Development Corporation to expedite the governmental review process in order to commence construction of the new tower as quickly as possible.

SJP Properties' long time investment partner, PREI, is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU). PREI is acting on behalf of institutional investors.

"Given the strength of New York's economy, this is an extraordinary opportunity for a new world-class office development in the heart of midtown Manhattan," said Steven J. Pozycki, chairman and CEO of SJP Properties.

"For the city and its corporate tenants, this is the ideal time for a development of this scale in this prime location--there are few large-scale blocks of Class-A space or development sites available in midtown. In the 25 years we have been studying the midtown market, we have never seen it as strong as it is today. 11 Times Square represents a vital opportunity for the City and State to retain large corporations looking for sizeable floorplates of new generation space in this core commercial district."

SJP Properties' new tower will be located on the southeast corner of 42nd Street immediately north of the new New York Times headquarters building and directly across the street from the Westin Hotel. Together, these developments will define the western gateway to the 42nd Street entertainment district and the Times Square business corridor.

The state-of-the-art, environmentally responsible tower will include 55,000 s/f of retail space on three levels featuring bold signage "spectaculars" along 42nd Street in keeping with the Times Square streetscape.

Located on what is known as Site 8N in the 42nd Street Development Plan, the 37,825 s/f site is bounded by 42nd Street to the north, Eighth Avenue to the west, 41st Street to the south and the Times Square Hilton Hotel to the east. SJP Properties has engaged FXFowle Architects to design 11 Times Square. FXFowle has designed three architecturally-distinguished office buildings nearby: the Conde Nast Building at 4 Times Square, the Reuters Building at 3 Times Square, and The New York Times Building in collaboration with architect Renzo Piano, at 620 Eighth Avenue.

Stephen B. Seigel, chairman of global brokerage at CB Richard Ellis, who represented SJP Properties in the purchase of 11 Times Square, said, "SJP Properties is taking this unique opportunity to develop a signature office tower on the most sought-after parcel of real estate in midtown Manhattan. Their top-flight team of professionals have developed some of region's most successful Class-A office space and I believe that 11 Times Square will become one of the City's premier business addresses."

SJP Properties is currently developing two residential high-rises in midtown Manhattan--at Park Avenue and 37th Street and near Times Square at Eighth Avenue and West 46th Street.