PERSPECTIVE
During the early 1900s , when The New York Times moved its operations to 42nd street , the area was named Times Square . As the growth in New York City continued , Times Square became a cultural hub of theaters , music halls and hotels , but by the 1920s , the area was besieged by crime and corruption , in the form of gambling and prostitution . The dangerous reputation of the area endured through the early 1990s .
Now , with roughly 360,000 pedestrian visitors per day amounting to more than 131 million a year , today , Times Square is the most visited place in the world .
PROPERTY PRINCIPLES Real property is in a constant state of flux and change , affecting individual properties , neighborhoods and cities . Economic , environmental , government and social forces affect all markets , particularly real estate . Highest and best use often is identified as the key concept supporting real estate use and value decisions . According to the doctrine , in any case where the market value of real property is sought , that value must be based on that use that would produce the highest value for a property ,
Hotel Pennsylvania on Seventh Avenue , across the street from Madison Square Garden , closed in 2020 . regardless of its actual current use . The highest and best use of a specific parcel of land is shaped by the competitive forces within the market where a property is located . The market value of real estate , which is predicated on highest and best use , represents a picture at a certain point in time within its constantly changing environment .
The New York Marriott Marquis is a classic case study of the dramatic changes that have occurred in New York City over the last 40-plus years . Planning for the development was first announced in 1972 when then Mayor John Lindsay approached John Portman , a prominent Atlantabased architect and real estate developer , to design a major hotel in Times Square as part of a larger campaign to revitalize the crime-ridden neighborhood . The project was born in controversy because five historic theaters — the Helen Hayes , the Morosco , the Astor , the Bijou and the Gaiety — were demolished to clear the site in what was dubbed “ The Great Theater Massacre of 1982 .”
Located on Broadway between 45th and 46th streets , construction over a three-year period led to the hotel officially opening in October 1985 . At a cost of more than $ 400 million , the project included approximately 1,900 guestrooms and suites , 80,000 square feet of meeting , banquet and exhibition space , and the 1,600-seat Marquis Theater . It ’ s often credited as the starting point of New York City ’ s commercial renaissance .
A HOTEL FOR THE FUTURE At the time , Portman ’ s style of inwardly oriented spaces made logical sense , although the development had been criticized for turning its back to the then seedy character of Times Square . A New York Times article titled —“ Marriott Marquis Hotel : An Edsel In Time Sq .?”— published on August 31 , 1985 , described the building as “ immense and determinedly futuristic , a gargantuan mass of concrete and glass , looming over Times Square like an upended bunker .” ( An Edsel refers to a discontinued brand of car produced by the Ford Motor Company and , subsequently , has joined the lexicon to mean a product that fails to gain public acceptance .)
Fast forward to 2012 , when Vornado Realty Trust ( VNO ) agreed to lease , redevelop and expand the retail portion of the hotel . The 20-year lease with the property owner , Host Hotels and Resorts , enabled VNO to purchase the space from Host at a price based on future cash flow . VNO invested roughly $ 140 million on improvements , including closing the arcade under the hotel and the creation of a glass facade for new retail stores positioned to face Broadway , which include 20,000 square feet on the ground floor and 25,000 square feet below grade . VNO also installed a 25,000-square-foot , 80-foot-high LED sign covering the Broadway face of the hotel , and which wraps 50 feet around each side of the building .
The New York Marriott Marquis evolved as its surroundings changed and , today , the highest and best economic use is orientation of the building outwardly to embrace the
54 hotelsmag . com Mar / Apr 2024