3 Times Square

New York, New York

Tishman, engaged as tenant representative, crafted a transaction that resulted in the development of the new Reuters Building at 3 Times Square – a technologically and environmentally state-of-the-art office tower. The new development was the culmination of eight key aspects: (1) the acquisition of a 92-year ground lease on a prime Times Square redevelopment site; (2) a joint venture development agreement for a signature office tower; (3) millions in City and State corporate retention tax incentives; (4) acquisition and condemnation of the adjoining New Victory Theater annex to increase the development site’s floor area ratio; (5) a 20-year lease for 500,000 square feet, with options to expand and renew for up to 50 years; (6) rights to a large portion of the new building’s signage; (7) a preferred return on Reuters’ investment in the project; and (8) negotiation of a construction and permanent loan with a major institutional lender. Tishman was able to consolidate 14 Manhattan and 22 New York metro area Reuters locations into a minimum number of locations at a lower occupancy cost and higher profile, including this state of the art headquarters facility.