112 West 34th Street

Less than three months after adding 112 West 34th Street to its portfolio, W&H Properties has scored a major coup for the building's retail space. Billabong, the publicly traded global sports apparel company from "down under," has signed a long-term lease for 1,587 square feet, directly across the street from Macy's world-famous flagship store, at one of the highest 34th Street rents per-square-foot in recent history.

Founded in Australia in 1973, Billabong has emerged as perhaps the world's leading retailer of surfing apparel and accessories, and in recent years also has joined the ranks of the largest snowboarding and skateboarding apparel makers.

In the process of formulating the building's capital improvement program, which includes the renovation of the building's lobby, it was determined that a prime retail space on 34th street could be created from a portion of the existing oversized lobby, generating tremendous rental value.

"In addition, we knew this choice space had the potential to attract an exceptional retailer and so we marketed it aggressively within the context of our upgrading of the entire building," says Fred C. Posniak, Senior Vice President of Wien & Malkin Supervisory Services. "It's an enviable, high-visibility location with a huge volume of pedestrian traffic, just off one of the busiest intersections in the world, where Broadway and Avenue of the Americas meet at West 34th Street."

Other Nearby Properties

W&H's retail plans in the Herald Square area also encompass two other exceptionally well-situated Herald Square office buildings added to the portfolio in January. As reported in the winter issue of Real Estate Investor, a 25,000-square-foot block of multi-level retail space at 1350 Broadway, occupying the north end of Herald Square, is being redeveloped and marketed to major retailers, either in its entirety or subdivided.

The site, which enjoys visibility from all sides of the square and for many blocks down Broadway, and includes more than 300 square feet of exterior signage, represents the most significant New York City retail opportunity coming to market this year, says Mr. Posniak, who notes it will be available for occupancy in January 2008.

And just across the street, at 1333 Broadway, right next store to Macy's, W&H will soon be marketing an additional 50,000 square feet of prime retail space.

In addition, extraordinary new retail opportunities are being made available at the Empire State Building, further underscoring W&H's powerful new retail presence in the rapidly growing 34th Street corridor.

"Each of these properties is undergoing a top-to-bottom renovation and repositioning, designed to realize their full value for our investors," Mr. Posniak explains, adding:

"Retail space is a very important part of that program. Because of their prime locations near transportation hubs in destination neighborhoods, these buildings offer tremendous advantages that weren't fully exploited under prior management.

Working together with the leading management and leasing firms we installed in January, Cushman & Wakefield, CB Richard Ellis and Newmark Knight Frank, ownership intends to earn our retail space its rightful place among the most sought after in the city, at the highest rents possible."