Union Square landmark in major lease accord.

After being vacant for more than 15 years, a major Union Square landmark will be restored under a 40-year net lease agreement as part of a joint venture consisting of The Related Companies, L.P., headed by Stephen Ross, and The Carlisle Group, headed by Harry Feldman and Jules Demchick.

The announcement brought cheers from local leaders who had pleaded with the city to enforce the landmarks regulations to compel the owner of the building to prevent it from deteriorating.

The former Century Publishing Company Building, 33 East 17th Street, will be restored as part of an agreement with the owner of the property, Lillian Seril, and two partners. The principals of the new entity for 33 East 17th Street said they plan to begin a major renovation this summer that will prepare the property for retail and office tenants without disturbing its unique exterior appearance.

Plans for the rehab have been under consideration by the Landmarks Preservation Commission since February. It was not immediately known whether the repair work was approved by the city.

While the exterior of the property will be restored to its original condition, the interior, 107,000 square feet, will be converted into retail and office space. Jeff Blau, vice president of Related Companies, said a large "bigbox" retailer is already reviewing a lease with the partners for a sizable part of the space. He also said the first three floors of the building will be devoted to retail use, with the remaining floors to be used for office tenants.

The terms of the net-lease agreement were not disclosed. Jacqueline Mansfield of Rockwood Realty Associates was the broker in the transaction.

Among the property's unique architectural characteristics are its richly carved stonework, two-story oriel window, gambrel roof framed by massive chimney stacks, and terra-cotta details including sunflowers, the trademark of its Queen-Anne style.

"This is a unique property in a location which will enable it to benefit from the resurgent Midtown South office market as well as the rejuvenated Union Square retail and residential districts," Blau said.

The building, designed by the late 19th century architect William Schickel, is a seven story loft building which is one of the city's few commercial structures with Queen Anne-style features. It was originally designed for the Arnold family, the owners of the Arnold Constable Department Store, and was completed in 1881.

The Century Publishing Company occupied the building for more than three decades, where the famous magazines The Century, and St. Nicholas Magazine (a children's publication), were published. The Century Publishing Company also published the works of Edith Wharton, Mark Twain, Rudyard Kipling and Robert Lewis Stephenson.

Big Cheer From Local Leaders

Jack Taylor, a noted local preservationist, said the announcement appeared to be "good news" for the building, which he was pushing the City's Landmarks Commission to force the owners to repair.

Taylor said one of the partners, Jules Demchick of Carlisle Group, did create a special mansard roof on his building and had a mural painted in the lobby by a famous artist. He said he hoped the partners would take special care to restore the building to it's former grandeur.

Rob Walsh, executive director of the 14th Street Union Square Local Development Corp and Business Improvement District, applauded the news, saying this is part of a trend of the resurgence of Union Square and 14th Street.

He said other major properties will also be developed including the old May's Building on Union Square South to be rebuilt by Bradlees Department Store; Toys 'R' Us is renovating the former Kiddie City site on Union Square East; The House of Blues will be coming to the former American Savings Bank Building on East 15th Street; Beth Israel is moving into vacant space in Zeckendorf Towers; K-Mart is drawing plans for a huge assemblage in Union Square South - more than 40,000 square feet; Nordic Track has taken over a large building on Union Square North; and Hagan Daaz ice cream is slated to take space on Union Square West.

"Things are happening rather quickly on the square and we are trying to move this progress east on 14th Street," Walsh said. "Not only do we have this development, but we have $35 million in renovations coming to the subway station, possibly the Transit Police Academy on 14th Street, and maybe a Glick type development for the Palladium site. I think we still have a lot of work to do, but businesses will get the message."