NEW YORK CITY-As large mixed-use projects continue to make headway throughout Manhattan, heavy-hitters Durst Fetner Residential and hospitality icon Ian Schrager are teaming up to develop a new hotel and rental apartment building in Midtown’s Herald Square submarket. The joint venture partners plan to build a 250-key hotel and 315 rental units at 855 Sixth Ave., a project near DFR’s successful 58-story Epic mixed-use tower between 30^th and 31^st Streets.

The 155,000-square-foot hotel, to be called “PUBLIC New York,” will include a 10,000-square-foot restaurant, an outdoor garden, a bar, a nightclub, banquet and meeting spaces, 10,000-square-foot gym, a swimming pool and other amenities. The hotel will be managed by Schrager, who is also a partner in the hotel ownership joint venture with DFR.

The hotel will be housed on the first 16 floors of the building and the rental residences will be perched on floors 20 to 56 above. The 486,000-square-foot building also will have 60,000 square feet of retail on the first and second floors. The JV expects a spring 2012 groundbreaking and a 2014 opening. It will be designed by Cook + Fox Architects and will be Schrager’s first ground-up hotel in New York.