1412 Broadway Renovations, Energy Star Help Secure Major Renewal With Apparel Tenant

A major lease renewal at the 25-story, 415,000-square-foot 1412 Broadway is a good example of how Midtown owners are repositioning their assets with capital improvement programs – many of which have also included LEED and/or Energy Star components – designed to attract and retain tenants.

The 25-story 1412 Broadway earned a 2011 Energy Star award with a score of 85, on the heels of a major 2010 capital improvement program that recladded its lower floors-with an energy-efficient glass curtain wall designed by Moed de Armas & Shannon (pictured). Now, the 415,000-square-foot tower has secured a major lease renewal: One Step Up, a children’s and maternity apparel manufacturer and wholesaler (not to be confused with the eponymous Springsteen track), recently signed a 10-year renewal for its 53,000-square-foot headquarters lease on 1412 Broadway’s second, third, and seventh floors.

A tenant there since 2004, the company was impressed with owner Harbor Group’s improvements to the building. “They were obviously making the right commitment to the building, and so we thought they would be a good partner for a long-term rental,” a One Step Up representative told Crain’s. In addition to the lobby and facade, bathroom, and hallway work, Harbor Group – which acquired the property in 2010 – has spent over $10 million upgrading electrical capacity, telecommunications infrastructure, and windows. Asking rents at 1412 Broadway are around $47 per square foot; One Step Up renewed at an undisclosed – though lower – figure thanks to its anchor tenant status.

As the Midtown South submarket continues to burn white hot, owners and landlords just to the north are betting that building improvement programs – many of which involve LEED certification or Energy Star applications, in addition to lobby upgrades and other tenant-focused aesthetic amenities – will prevent existing tenants from straying. 1412 Broadway is a good case study of how those types of efforts are being implemented successfully.

Located between Penn Station and Times Square at West 39th Street, the 25-story 1412 Broadway dates from 1928 and was originally designed by architects George and Edward Blum. Several other apparel company tenants call the tower home, including Jones New York and Escada USA. Retail spaces are currently occupied by Ricky’s, Coffee Bean & Tea Leaf and Europa Café.

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