Monday Properties announced the 31,700-square-feet expansion of Macy’s, Inc. at 1440 Broadway, the building Monday Properties owns and operates on the southern fringe of Times Square at 40th Street.
It was the storied 150-year old retailer’s third expansion in two years at the 25-floor office building, and gave it full occupancy of the 10th floor, which Advance Magazine Publishers had subleased to Skadden Arps since 2006. CBRE Vice Chairmen Scott Gottlieb and Michael Laginestra represented the tenant, while Monday Properties Director Jordan Berger represented the owner. In addition to the expansion, Macy’s extended its lease on the building’s sixth, seventh, eighth, ninth and 13th floors. Both elements of the deal are on 11-year terms. The retailer now occupies 197,000 square feet of the 743,000-square-foot building. “It’s been really organic, steady growth for Macy’s,” said Brian Robin, executive vice president and chief operating officer of Monday Properties.
The intricate deal included Skadden Arps seeking a sub-sublease on the space. “It was nuanced,” said Mr. Robin. “But when reasonable people work on a complex negotiation, it’s not hard to get a good outcome. This all came together quite elegantly.”
Monday Properties is currently marketing the entire second floor of 1440 Broadway, which has traditionally enjoyed 100-percent occupancy. The fresh-on-the-market floor offers 12’6″ ceilings, oversized windows and tenant-controlled heat, ventilation and air conditioning units. The type of tenant Monday Properties seeks is “the right tenant for current Times Square south and how it’s evolved,” Mr. Robin said. “The neighborhood has grown from traditional garment uses to now, where it’s just as likely to attract media and broad retail companies.”