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K-Mart deal sealed at One Penn Plaza.

(ATLANTA, GEORGIA) - No sooner had REW touched down in this town of unique skyscrapers than we got a call from a relieved Peter Malkin, who said the long-awaited K-Mart deal at One Penn Plaza is signed, sealed and delivered. If you recall, it wasn't K-Mart that was holding up the process. but the MTA/LIRR that was insisting on certain deal points.

Because the new store extends from the building above into the recesses of the LIRR corridors, the MTA had to approve the deal.

Malkin, who is a partner with Harry Helmsley and the Metropolitan Life Insurance Company in Mid-City Associates, the actual owner of the property, said the deal was concluded with the LIRR, and then Amtrak approved the deal at the end of the day on Friday, October 20th. "The agreement is concluded," Malkin said.

Demolition has started and construction will soon begin on the approximately 145,000 square-foot store that is now scheduled to open in March of 1996 and includes portions of the street level and three levels below that in the Long Island Railroad Concourse.

The original deal was held up because the MTA was insisting on an eight-foot setback on one of the concourse levels that would 4ave run 300 feet and involved the displacement of several other small stores. Since the concourse was just rebuilt with marble halls, the owners of the building would have been responsible for the reconstruction of the corridor. The dispute, that included other but not as significant deal points, went to an arbitrator earlier this year.

"With one small exception, we won" said Malkin. The corridor will now be set back along approximately 100 feet of K-Mart frontage, rather than the entire span.

Malkin credits the new chairman of the MTA, Virgil Conway, and his chief of staff, Chris Boylan, for the happy conclusion of the deal. "When he came on board, they became a much more reasonable and rational group," Malkin said, in a sentiment that the people at Boston Properties could well understand.

REW is attending the National Association of Real Estate Investment Trusts (NAREIT) Convention in Atlanta, where Jack Kemp was the luncheon speaker. Although not a rabble-rouser like Newt Gingrich, Kemp's simple proposal for a zero capital gains tax and single flat tax is gaining support.

"I told Gingrich that if Clinton could make a tax increase retroactive, Gingrich can make the tax cut retroactive to January 1, 1995," Kemp confided. The former football star sits on the board of the Columbus Realty Trust with Bob Shaw and Roger Staubach and a bunch of other "former jocks."

"REITs have given people a chance to pool their resources and invest in real estate," Kemp said. to the 1,500 gathered for the NAREIT Conference at the Atlanta Hilton.

More about the Conference next week. But if you haven't been to or invested in Atlanta in awhile, a quick trip here to the home of the 1996 Summer Olympics will show you why folks like Sam Zell are pouring money into this town and scooping up the sensational sky-topping show-stoppers.

If you want your building plans approved without earthquake code provisions, you must have properly submitted their drawings and have DEP sewer connection in place before Feb. 21, 1996, when the grandfather clause expires for new structures and additions.

The Earthquake Code provisions cover all new structures, or building additions or enlargements which exceed 60 percent of the building's value. Most engineers, however, have presciently been designing structures to the code for several years, including New York Hospital's 12-story building over the F.D.R. Drive.

Governor George Pataki was scheduled to sign the long-awaited Downtown Revitalization Plan on Sunday, October 29th at high noon in a ceremony at Rudin Management's new Technology Center at 55 Broad Street.

The Playboy Club and Action Park at Great Gorge are being taken out of bankruptcy, and industry sources report the investors are looking at boosting the area with time-sharing and resort attractions.

A misty Fall day didn't spoil the fun for several hundred locals and industry types who descended on Julien Studley's New Paltz's country home for the 14th Annual Apple Fest over Columbus Day weekend. The square dancing and annual fiddle contest were held, but the pony rides will have to wait for a sunny day next year.

Studley is among the grant supporters of Still Working, a Los Angeles art show focusing on 32 American artists who produced many of their strongest works at age 60 and up. Twenty-five of the artists are still living, but none are from New York. The Fisher Gallery is on the University of Southern California campus.

Since we're talking about those who are working well past their 60th birthday, the American Institute of Architects, New York Chapter is honoring Philip Johnson FAIA at its Heritage Ball on Monday, November 13th at The University Club. Johnson was among those who were designated a Living Landmark by the Landmarks Conservancy a year ago and now his peers are recognizing his many contributions, including the design of the new Trump International Hotel & Tower.

Atlantic City comes to the real estate industry on the evening of November 15th. No, it's not a gambling party but a Monopoly marathon, designed to raise funds for the Food and Hunger Hotline. This Third Annual Evening of Monopoly is sponsored by the students and alumni of the NYU Real Estate Institute and is expected to feature a special clash of the titans match with Bruce Mosler, Barry Gosin, Jerry L. Cohen and the evening's Honorary Chairperson, Steve Siegel.

To pass Go, students must pay $40, and all others $100 for a chance to pick from the Community Chest and play Monopoly. Cocktails, hor d'oeuvres, and a buffet dinner will be served up, and there will also be a raffle.

Last year, sources report, time player was rumored to have cheated by bringing Monopoly money from home. If you want to see who erects hotels and who ends up in jail, come from 6 p.m. to 9:30 p.m. for schmoozing and deal-making at the Puck Building on November 15th.

Down in the real Atlantic City, Original Ventures is winning over locals for a conversion of the current old Convention Center to "Atlantica," a $150 million multi--faceted urban playground with wave pools, shows and retail. "This is the first time that a municipal building has the ability to convert itself into a retail center, a show and a convention center all in one day and on a continuous basis," said David Plattner, who is proposing the conversion with backers the Mack Organization and LaSalle Partners. "Privatizing some of these big old white elephants is going to be the way to go."

The other white elephant Plattner is looking at with just LaSalle Partners is the New York Coliseum, where he hopes to create Kid's Place, a proposal made to the MTA in response to one of its RFP's a few years ago that led to nothing.

"We're developing our plans for the Coliseum and a substantial amount of time has put into these products to make a unique environment," Plattner said.

Kid's Place is taking an unparalleled approach to family entertainment, with 97 attractions including a rainforest, body surfing on an enclosed roof, 54 exhibits, a community center, educational components, retail, and a trade fair. "We're looking at these big municipal structures to turn them into socially responsible community centers and tourist destinations. We have attracted the building and construction trades behind us," Plattner added. But are New York politicians ready to let this happen?

Turning to a different kind of cooperative venture, the Federation of New York Housing Cooperatives will be holding its 29th Annual Seminar and Trade Show on Sunday, Dec. 3rd at Queens College. Advance registration is a must, so call (718) 353-5080

Kudos to Suzanne Sealy, a William B. May veep who won the first prize for the REBNY Residential Deal of the Year. Sealy brokered a three-unit co-op purchase from a total of 16 different sellers, thereby re-combining a former eight-room luxury unit.

Leslie Dezer was married at the St. Regis on October 14th to Richard Salamon, an analyst with Berneson & Minella. But the night before, they had a fabulous party at Dezerland, her family's fun spot in Chelsea.

And a big congratulations to William Koeppel who married Jean Herbage, a vice president t of governmental relations at Chase Manhattan Bank, at St. Patrick's Cathedral on October 93rd. Mayor Rudy Giuliani introduced the couple at a fund-raising event 18 months ago.
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Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Kmart Corp.
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Nov 1, 1995
Words:1430
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