SITUATION
Rockefeller Center is one of the most recognized commercial properties in the world. Defining midtown Manhattan, the Center's ten art deco buildings encompass six square blocks between Fifth Avenue and the Avenue of the Americas, from 48th to 51st Streets. The Center has a combined square footage of approximately 8.8 million square feet (8.2 million of office and 0.6 million of retail). This includes Radio City Music Hall, Christie’s Auction House, the world-famous skating rink, over 200 retail stores and dining venues and the broadcast studios of NBC. It is a true American icon known throughout the world.

By the mid-1990s, the Center, suffering from deteriorating property markets, fell into bankruptcy. Seeing this distress as a tremendous opportunity, Tishman Speyer led a partnership with four other prominent investors to acquire the Center in 1996 and immediately took responsibility for the management and operation of the complex. Never again would there be a chance to obtain an iconic asset of this magnitude and restore it to its original glory. Immediately, Tishman Speyer embarked on an ambitious redevelopment program to refurbish and revitalize the Center.

DEVELOPMENT
The fundamentals of the Center - location, layout, architecture, and aesthetic concept - are brilliant and irreplaceable. However, at the time Tishman Speyer took control in 1996, the property's condition did not meet world-class commercial building standards and could not attract tenants that would pay a premium for office and retail space. Therefore, Tishman Speyer used its operating platform as a vertically integrated developer and manager to create value. The firm developed a master plan for the Center's redesign, which addressed every aspect of the complex, including office and retail leasing, operating efficiencies, and capital expenditures. Executing the plan began with renovating the Center's office space to top-of-the-market standards. For example, Tishman Speyer replaced all of the elevator cabs with new state-of-the-art, high speed elevators, re-vamped the Center’s entire security system implementing features such as new electronic turnstiles, and renovated office floors' electrical and HVAC systems. As a result, Tishman Speyer has renewed leases with major tenants such as General Electric, Lazard, Bessemer Trust, Simon & Schuster, Rockefeller Financial, and the Government of the Netherlands and attracted new world class tenants, such as Bank of America, Fiduciary Trust, First Republic Bank, Shell Oil, Direct TV, Oppenheimer, State Street, and the New York Yankees.

In tandem with the office improvements, Tishman Speyer worked in partnership with the New York City Landmarks Commission and Planning Department to redesign and enlarge retail storefronts to create attractive, highly desirable retail spaces for tenants while maintaining and enhancing the building's original architecture to a standard befitting a world-renowned retail destination. The redevelopment of Rockefeller Center's retail plan, completed in early 2000, established a vibrant retail environment within the complex — creating an attraction for tourists, and adding a set of unparalleled amenities for office tenants. The main public areas within the concourse level were completely renovated using imported stone, custom bronze storefronts and new terrazzo marble flooring. The renovation resulted in new leases with a very high level of retail clients including Anthropologie, Banana Republic, Coach, Kenneth Cole, and J. Crew. To complement the retail at the Center, Tishman Speyer renovated the outdoor areas of Rockefeller Plaza. This renovation was geared to create an urban mall feel, and used over $10 million of bluestone paving. The end result was a classically styled renovation using contemporary construction details and materials.

In November 2005, Tishman Speyer, after a lengthy re-development effort, re-opened the observation deck at 30 Rockefeller Plaza, which had been out of operation since 1986. Top of the Rock Observation Deck was a $75 million construction project of 30,000 square feet spread over three floors with retail and media components in the lobby and mezzanine of the building. Today Top of the Rock is an accretive business for the property. Now in its third year of operation, Top of the Rock is the crowning achievement of the re-development of the Center and welcomes nearly two million visitors and tourists annually from around the globe.

Rockefeller Center has now been returned to its rightful place at the forefront of New York's professional, recreational and cultural life. It has many of the world’s most exceptional companies and once again plays host to year-round events: public art installations, concerts and shows in Radio City Music Hall, private events in both indoor and outdoor spaces, daily live television broadcasts and the most famous Christmas tree in the world.

ONGOING IMPROVEMENTS & SUSTAINABILITY
As onsite manager, Tishman Speyer continually seeks ways to improve the Center's profitability and operating efficiencies. Most recently, Tishman Speyer embarked on a three part "Greening Initiative" at the property. First was a program to upgrade the entire complex's original windows from 1933, and replace them with high performance, thermally insulated glass and metals to improve energy efficiency and reduce exterior noise levels. Second, a solar farm was installed at the top of 45 Rockefeller Plaza, which powers the LCD lights on the annual Christmas tree, in addition to other areas of the complex. Third, massive ice chillers were installed in the loading docks of the complex in order to use ice, as opposed to electricity, to cool the reactor that provides air conditioning to the buildings. As a consequence, electrical usage during peak summer cooling hours decreased significantly, resulting in major cost savings.

VALUE CREATED
As a consequence of Tishman Speyer's 12-year ownership and redevelopment of this beautiful landmark, Rockefeller Center has been meticulously preserved as an architectural treasure. At the same time, the top-to-bottom upgrade of the complex's amenities has re-established the property as a first-class office facility and world-class retail center. With the vision and execution of superior management, a symbol of the 20th century has been resurrected and transformed into a thriving, profitable, and sustainable 21st century icon of urban life where people congregate to conduct business, engage in recreational activities, and embrace culture.