1333 Broadway as it will look upon completion of upgrading.
Macy's Herald Square store, at left, is directly across West 35th Street.

Chalk up another dramatic achievement for the repositioning of the buildings most recently added to the W&H Properties portfolio: for the first time, a major corporate office tenant is coming to 1333 Broadway, on Herald Square.

Aetna Life Insurance Company has signed a long-term lease to occupy 39,000 square feet in the Pre-War Trophy tower, which formerly was a venue for the garment industry. Aetna will move in during mid-2008. Meanwhile, several other high-profile potential tenants are in the wings.

"This is a milestone for the building, validating our vision of a fully upgraded office center providing all the class-A comforts, conveniences and facilities that prestigious, high-credit-worthy tenants require and expect," says Anthony E. Malkin. "With the repositioning of this property, we have created new value for our investors, as we've done consistently within the W&H portfolio."

1333 Broadway is undergoing a $71 million modernization program. The building is at the northwest corner of Herald Square, next to Macy's flagship store and one of the city's major transportation hubs. Besides offering access to 15 subway lines a block away, the address is a five-minute walk from Penn Station, with commuter service to Long Island and New Jersey.

Although the transformation of the building is still in the early stages, the commercial brokerage community has taken notice, being well aware of what W&H has achieved right on the next block at 1359 Broadway, according to W&H executive Fred C. Posniak.

"We began the transformation of 1359 in 2003, when the property was half-vacant and hardly on the brokers' radar screen, and now it's filled with big-name tenants, some of them international, and already has won two prestigious awards," says Mr. Posniak. "Having 1359 next door to show brokers and prospective tenants is tantamount to having a full-scale future projection of the quality that 1333 will offer."

The capital improvements program for 1333 Broadway, a 12-story, 350,000-square-foot building, includes the creation of a new building entrance and lobby, new roof, new rest-rooms, new windows, upgraded passenger and freight elevators, plus the addition of two passenger elevators, renovated and air-conditioned public corridors, and upgrades to all building systems, including electrical, plumbing, HVAC and security.

Along with raising 1333 Broadway's profile as an attractive venue for mid-sized and large office tenants, plans are underway to maximize the building's potential for quality retailing.

"The proximity of Macy's, the heavy foot traffic, the over-abundance of public transportation and the growing prominence of the 34th Street Corridor in general present us with an ideal marketing opportunity with national and international retailers," says Mr. Posniak. "We're already in the market with a number of them that are seeking big-box venues in destination neighborhoods, such as Herald Square."