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Tenant takes four floors, 135,000 sf at 1515 Broadway.

David Solomon, executive vice president, Harper-Lawrence Inc. announced, in what is the largest single office transaction so far this year, that Frederick Atkins, Inc., an international department store merchandising and marketing cooperative with revenues of $10 billion, has signed a long-term lease for 135,000 square feet of office space on four floors at 1515 Broadway.

Solomon said, "The most important aspect of this transaction is that Frederick Atkins will remain in Manhattan, and the City will not lose 400 white-collar jobs."

The 15-year lease, plus two five-year extension options, was completed after almost two years of highly complex negotiations. Solomon represented Frederick Atkins exclusively in the negotiations, and COMPASS Management and Leasing served as leasing consultant to the owner.

The 53-story, 1.7 million-square-foot building in Manhattan's Times Square District is one of the largest in the city. William M. Korchak, director of Leasing for COMPASS, New York, said, "1515 Broadway is having the most successful leasing activity in Midtown West." Including the Atkins lease, almost 400,000 square feet have been leased in the building since last May.

The Atkins firm had expressed its desire to expand its original 100,000-square-foot lease at 1515 Broadway, due to expire in 1992, and remain in Manhattan. However, a nationwide downturn in department store sales, among other considerations, forced Atkins to begin a search for alternative space outside the city.

As an integral part of the final negotiations, the building agreed to perform required upgrade work, while Atkins agreed to temporarily relocate its offices within the building while the work was underway. Solomon proposed that Atkins move to two vacant floors, one temporarily and one permanently, allowing the renovation to take place two floors at a time, and substantially reducing the construction period. Solomon said, "This concept presents Atkins with minimum disruption while the work is underway, and at the same time, allows the building owner to have a steady cash flow during the upgrading."
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Title Annotation:Frederick Atkins Inc.
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Apr 1, 1992
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