A vision born nearly a decade ago is close to realization.

Two major retailers are circling to try to lease three levels of the Wien & Malkin retail condo at 1010 Third Avenue. Both recognize the rare opportunity to benefit from Wien & Malkin's plan to consolidate 37,000 square feet at street level and on the first and second floors. Those premises are currently occupied by several small office users, stores, and a bank branch, with all leases expiring next July.

Wien & Malkin is well on its way to obtaining approval of a use change to allow a larger retailer at this location, according to Fred C. Posniak, Senior Vice President of W&M Properties.

"We are also working with experts to establish this location, next to Bloomingdale's flagship store, as a logical, non-disruptive place for a major retailer to do business under a permanent zoning variance," says Mr. Posniak. "We are hopeful that we will see this matter resolved within the next few months and be able to conclude our transformative work with this long-term execution of our original vision," he adds.

Bloomingdale's a Major Factor

Bloomingdale's direct proximity to the site was a primary factor in the decision to acquire the hodge-podge of small retail spaces and offices, the W&M executive recalls.

At the time of the acquisition, the surrounding neighborhood was dominated by the boarded-up hulk of the Alexander's department store, which had occupied the entire block between Third and Lexington Avenues, and East 58th and 59th Streets, before going out of business. That block is now the site of Vornado's thriving mixed-use Bloomberg world headquarters development and condo tower.

Recognizing the Potential

"Despite Bloomingdale's presence, the closed Alexander's store imparted a stagnant feel to the neighborhood," Mr. Posniak says. "We knew that was temporary and that 1010 Third Avenue offered us enormous potential for creating future value as something much more than a row of modest shops. That's why we structured all the leases to expire at the same time."

The retail condo at 1010 Third Avenue also includes an underground parking facility, which neither of the prospective tenants intends to lease. Negotiations for releasing that portion of the property will be concluded in the near future.