In September 2004, Sitt Asset Management contracted to acquire the site from SL Green Realty for $160 million. In that transaction, Harmon served as the exclusive broker for SL Green. At the time, Sitt said it was considering converting the upstairs portion of the 315,000-sf site to a hotel. Current tenants include retailer the Gap, Kellwood, LEI-Jones NY and Quicksilver. Office space goes for a range in the 40s per sf.

Constructed in 1906 as the Knickerbocker Hotel, the 16-story property was subsequently converted into office space. It is located on the southeast corner of Broadway and 42nd Street. SL Green originally purchased the property in March 1998 for $65.3 million, and completed a capital renovation and repositioning program totaling approximately $14.6 million.

Investment and construction activity in the Times Square area has been on the increase. The Durst Organization is constructing the nearby One Bryant Park for Bank of America, while Forest City Ratner is working on a headquarters for the New York Times on Eighth Avenue between 40th and 41st streets. Also, Boston Properties just acknowledged that it is in discussions to sell two core assets here. Sources have said those sites include Five Times Square Tower. For additional information on that sale, click here.