This fall marks three years since the launch of the W&H Properties portfolio, and is a useful point to measure the success of our ambitious program of capital improvements, management changes, brand awareness, and tenant initiatives.

Quantitative, as well as objective, measures show that our effort to transform four Class-B properties into Trophy Pre-War office buildings, an entirely new category, is bearing fruit. Rents have significantly increased, we have leased extensively to larger and higher quality tenants with longer lease terms, and occupancy rates are approaching 100 percent.

Each of the properties in the W&H Portfolio, which currently includes The Lincoln Building at 60 East 42nd Street, 250 West 57th Street, 1359 Broadway, and 501 Seventh Avenue, benefited from a capital improvement program totaling a quarter-billion dollars, now entering its final stages.

At 501 Seventh Avenue, which was named BOMA's New York's 2006 Renovated Building of the Year, the $53 million upgrade is virtually complete. The renovations have included new heating and air conditioning systems, a new lobby, roof, elevator cabs, corridors and bathrooms, and upgraded mechanical systems.

Also in the active Herald Square district is 1359 Broadway, which is nearing completion of a $54 million upgrade. Immediately evident is the handsome new marble lobby, with its arched entrance. The program also encompasses a new HVAC system; new windows, elevator cabs and restrooms; newer, faster elevator operating systems; upgraded electrical systems, and refurbished corridors.

At 250 West 57th Street, dramatic improvements to the building parallel the transformation of the Columbus Circle area into one of the city's most exciting neighborhoods for both business and culture.

The $35 million program has resulted in an office facility that is modern in every respect, and yet the appeal of its classic architecture has been preserved, refreshed and enhanced to honor its historical aspects.

For example, the lobby reflects the style and charm of the early 1920s, when it was created, but with tasteful modern touches. It preserves the original marble walls and terrazzo floors and introduces such Old World features as pilasters, ceiling coffers, pendant lighting and detailed moldings. A new canopied entrance is visible from the street and a new concierge desk greets tenants and visitors. A renovated subway entrance has just been completed. Renovations also include a new HVAC system, new elevator operating systems and cabs, new windows, upgraded electrical systems and refurbished corridors.

Finally, at The Lincoln Building, we are nearing the end of a $43 million improvement program, and we have allotted an additional $12 million for further enhancements. Already completed is a new HVAC system, new and faster elevator operating systems, new elevator cabs with marble interiors, new windows, and refurbished corridors and bathrooms.

Several other important developments have taken place at the buildings during the past three years. A change of management from Helmsley-Spear to three top management firms – CB Richard Ellis, Cushman & Wakefield, and Newmark Knight Frank – was very warmly welcomed by the brokerage community and by existing and prospective tenants.

Leasing activity began in earnest at the portfolio's launch, supported by the Show, Lease & Win rewards program for brokers and the Refer, Lease & Win program for tenants.

Full-Fledged Marketing Effort

We also spearheaded a full-fledged marketing effort to educate commercial brokers and Manhattan firms about the W&H brand, our plans for the properties, and our leasing successes, emphasizing a track record of delivering on promises.

The results the portfolio has achieved to date have more than justified the resources and budget allotted to them. Asking rents at each building are at an all-time high, with The Lincoln Building surpassing $50 per square foot on higher floors, 1359 approaching the high $40s, 250 reaching the high $40s, and 501 in the mid $40s.

Portfolio Occupancy Exceeds 95%

"We've also been able to greatly reduce, and in some cases do without altogether, landlord contributions toward tenant installation and periods of free rent," notes Fred C. Posniak, Senior Vice President of W&M Properties, the acquisition, management and leasing arm of the Malkin family. "These policy changes have not hurt leasing at all. On the contrary, the occupancy rate of the portfolio is more than 95 percent, an all-time high."

In addition, the buildings' tenant rosters are more prestigious than ever, says Mr. Posniak. Today, the properties house such publicly- traded companies as The Warnaco Group (which maintains its headquarters at 1359 Broadway), Sun Life Financial, Bear Stearns, EDO Corporation, Gerber Technology, and Keane and York International.

Overhauling the buildings in the W&H portfolio has clearly been a worthwhile endeavor. We are now considering adding the remaining buildings supervised by Wien & Malkin and formerly managed by Helmsley-Spear – 1333, 1400, and 1350 Broadway; 112 West 34th Street, and the Empire State Building – to the W&H portfolio. Look for exciting news in our next edition.