L.H. Charney Brings New Life to Garment District
There’s a lot of reinvention going on at 1441 Broadway and 1410 Broadway, in the neighborhood (between the Garment District and Times Square) and in the buildings themselves. One reason is the vision of new leadership at their owner, L.H. Charney & Associates.
The 1930s office buildings that previously housed apparel companies have been renovated and introduced to a wider range of tenants including WeWork, Champs Sports, Wellspring Philanthropic Fund and others, said Steve Anderson, CEO of L.H. Charney.
“There is a changing work dynamic/culture that is permeating the neighborhood which we have embraced,” Anderson said. “L.H. Charney is a family business that owns two well-positioned office buildings in the Bryant Park/Times Square submarket. The buildings’ tenant makeup is changing as a function of the marketplace and the capital improvements we’ve made to bring them to a new level.”
Reinvention is in L.H. Charney’s DNA. The privately held company was founded by Leon H. Charney, the Bayonne, New Jersey-born son of a sewing supplies salesman. Raised in meager circumstances, he became a self-made billionaire attorney, political advisor, author, philanthropist and host of the weekly television talk show “Leon Charney Report,” which discussed local New York politics, foreign affairs and the Middle East. It ran for 25 years. In 1981, he became a real estate investor, acquiring two buildings, 10 Times Square (also known as 1441 Broadway) and 1410 Broadway.
“There is a changing work dynamic/culture that is permeating the Bryant Park/Times Square neighborhood which we have embraced”
Upon Charney’s death and the retirement of the company’s president, both in 2016, Charney’s widow Tzili Doron Charney and company executives sought leadership that would continue the redevelopment of 1441 Broadway that was already under way, oversee a reimagining of 1410 Broadway, and provide solid leasing and financial experience.
Anderson, who had been a lender to L.H. Charney, fit the bill. After graduating from college, he spent 15 years with CBRE’s midtown office before moving to the lending side with RBS Greenwich Capital and Loan Core Capital. It was logical that the company would ask his advice about new leadership.
“I had a special relationship with Leon Charney and his staff. So when the phone call came up from the Charney organization, it was a unique opportunity. The rest is history,” said Anderson, who joined the company in December 2016. “My past two careers in brokerage and finance have provided experience which is invaluable as we strive to maximize the value of the portfolio.”
Designed by Bachman & Kahn, the 34-story, 575,000-square-foot 1441 Broadway (now known as 10 Times Square) was completed in 1930 and features numerous setbacks. Floor sizes range from 22,000 square feet in the base to 5,500 square feet on the topmost floors. Because of the tiered “wedding cake” construction of the building, companies of varying sizes can take full-floor spaces.
In 2018, a major lobby renovation melded traditional elements with new materials, and created opportunities for glass box retail on the ground floor.
“The original building featured a block-through lobby, which extended from Broadway to Seventh Avenue,” Anderson recounted. “The cellar, first and second floors all featured extraordinarily high ceilings. With a new glass curtain wall on the first and second floors and by eliminating the block-through, we were able to create a retail box that has prominent selling space in a location that boasts among the highest pedestrian counts in New York City.”
The Broadway side now houses a Champs Sports. A restaurant is planned for the Seventh Avenue side.
The company is creating a more industrial look for the 34-story, 385,000-square-foot at 1410 Broadway, through a gut renovation of the lobby, a complete modernization of the elevators featuring “lobby boost” technology, the renovation of common corridors throughout the building, and a complete renovation of the restrooms. It’s not surprising, then, that WeWork has leased five floors comprising 75,000 square feet at the building for its Headquarters by WeWork brand, which creates office spaces for slightly larger businesses (those with 11 to 250 employees) than are typically found in its traditional brand. This brings another dimension to the mix: younger, entrepreneurial companies.
“These buildings are a second home for people, myself included, and we strive to make it interesting.”
“1410 was largely dominated by fashion industry. We had 131 tenants with average tenant sizes of under 3,000 square feet,” Anderson said. “We determined that that the building would be more successful and efficiently managed with fewer companies with better credit quality taking larger footplates. Today, we have fewer than 90 tenants and occupancy exceeds 95%. There is a survival of the fittest ‘theme’ in the industry as it evolves from the retail showroom staples of yesteryear to companies that are stronger, smarter and more efficient at serving their customers. We still welcome the fashion industry and have expanded several existing textile companies. We welcome new showrooms into the building. We have recently attracted several service firms in accounting, technology and real estate.”
Art is a critical component in both buildings. The lobby at 10 Times Square provides gallery walls for the company’s cultural initiative. The walls’ display capabilities include paintings, sculpture, visual presentation, video and audio. The lobby at 1410 Broadway features art by Basmat Levin and National Institute of Art & Disabilities (NIAD) ceramic and mixed-media sculptures.
Anderson is quick to point out that the Charney buildings aren’t solely the cause for the reinvention of the neighborhood.
“The emergence of Bryant Park as a welcomed gathering space and the efforts of Garment District NYC have provided much-desired outdoor space in the area,” he observed. “The transportation hub in Times Square is one of the most trafficked in all of Manhattan, and it has an entrance under 10 Times Square. It’s a real amenity tenants recognize when planning their occupancy strategies.”
And there’s time for a bit of entertainment along the way. The team at Charney established a lobby music program at 10 Times Square that creates camaraderie among the tenants.
“The renovation that surrounded the gallery component of the lobby included an elaborate sound system for screening and artistic displays,” Anderson said. “It sounded so good that we decided to introduce music daily, and with the tenants’ input we created the ‘tenant playlist.’”
The result is an eclectic mix of musical styles from Broadway tunes to the Grateful Dead to Beyoncé that greet tenants and visitors. Tenants were getting such a kick out of hearing their suggestions played that the program, launched with music played at lunchtime and in the late afternoon, was expanded to early mornings to greet tenants when they arrive at work.
“The programming has been fun,” Anderson said. “These buildings are a second home for people, myself included, and we strive to make it interesting.”
The capital improvements and artistic initiatives have been instrumental to the growing success of the portfolio, which boasts occupancy levels exceeding the market average.
“We support a proud tradition at L.H. Charney Associates,” Anderson said. “And we are excited to introduce new and compelling experiences for our tenants to draw on.”
