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Jan. 01, 2021

Kramer Levin Condominium Magic Makes Palace Theatre Float on Air

Our Condominium lawyers, in conjunction with Kramer Levin’s Real Estate and other transactional groups, recently assisted our theater-industry client The Nederlander Organization in greatly enhancing the value of its Times Square building at 1568 Broadway by unlocking and creating new valuable signage and at-grade retail space. By formulating an unprecedented, unique condominium structure, Kramer Levin facilitated a several-hundred-million-dollar transaction, which involved our client retaining ownership as a condominium unit of the 100-year-old, iconic Palace Theatre, which is an interior landmark, but elevating it by approximately 30 feet, and selling the remainder of the building as separate condominium units to a developer with plans to undertake a $2 billion renovation of the space below and above the newly elevated theater. As part of the redevelopment, the parties intend to unify valuable Times Square signage at the building’s façade. Once the new construction is complete, the bulk of the new signage and the retail space will be reconstituted as part of the developer’s condominium units, and The Nederlander Organization will own a state-of-the-art, but landmark-preserved, Palace Theatre and prominent theater signage as a condominium unit within the confines of the larger redevelopment.

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