The property, which is located on the north side of 42nd street, midway between Sixth Avenue and Times Square, has been the missing centerpiece in Durst's plan to develop a 1.5 million-sf office building adjacent to Durst's 4 Times Square. The Maidmans had planned to build an apartment hotel on the 2,200-sf parcel, a plan Durst vehemently opposed. The two sides reportedly reached an agreement this week and closed the sale within 24 hours with no contract.

"Although the Maidman family was considering a renovation, they graciously decided that in the interest of furthering new office development in New York City, it was preferable to facilitate our completion of the mid-block assemblage," Durst says in a prepared statement.

Durst says a decision on proceeding with the project will be made shortly. Demolition could begin in the summer, with occupancy in the new tower ready by sometime in 2005. Fox & Fowle has been retained as architects.