Tishman Speyer is adding Manhattan’s Hippodrome building to its global third‑party property management portfolio as it grows that line of business.
Co-owners Edison Properties and Gottesman Real Estate Partners hired Tishman Speyer to oversee property management — with an emphasis on hospitality services — at the iconic 21‑story tower at 1120 Ave. of the Americas, the three companies said in a statement Tuesday.
The property sits on the former site of the historic Hippodrome Theater, once the largest and most successful theater in New York, before the lot was transformed into the 615,000-square-foot office tower, they said.
Edison Properties, which bought the site in 1978, had renovated the building with a glass curtain wall, a two-story lobby, all new building infrastructure and top-tier amenities, they said. The property was built in 1962, according to CoStar data.
As part of the assignment, Tishman Speyer also will manage ElevatedNY, the four-floor coworking and move-in-ready office concept at the Hippodrome, and incorporate it into Tishman Speyer’s Studio flexible workplace business, they said.
Tishman Speyer, after gaining decades of experience managing its own properties and handling third-party assignments, formally launched its global third-party property management business in 2024, a spokeswoman told CoStar News. Before hiring Tishman Speyer, ownership managed the Hippodrome in-house.
Steady revenue stream
Third-party management and other fee-based businesses provide stable revenue streams, free from the risks that come with owning properties, industry professionals say. Meanwhile, some owners without similar resources or skillsets can employ third-party management to keep their properties competitive as tenants increasingly demand hospitality and other amenities and services as key office must-haves, they say.
“Over the past decade, there has been a shift in real estate strategies as companies seek to maximize efficiencies by engaging with a strategic partner and outsourcing parts of their operations to experts,” a JLL study found. “Traditionally, outsourcing was focused on tasked-based facilities management. Today, CRE leaders use outsourcing to help them rise to the challenge of hybrid working, and to transform their real estate to align with the needs of their organizations and people.”
The Hippodrome adds to Tishman Speyer’s growing third-party property management business that the developer said allows it to leverage its know-how as an owner and operator of 87 million square feet of Class A assets across 40 markets. Its current portfolio of third-party managed properties includes Hearst’s headquarters tower at 300 W. 57th St. in Manhattan; Credit Suisse’s 1120 G St. in Washington, D.C.; Crown Family Holdings’ 222 North LaSalle St. and Deutsche Bank’s 300 South Wacker Drive in Chicago; and JPMorgan and GIC’s Opernturm in Frankfurt, Germany, Tishman Speyer said.
“Our team brings an owner-operator mindset, deep local expertise, a commitment to hospitality, and a vertically integrated platform to help partners enhance performance, elevate the customer experience, and unlock long-term value,” Tishman Speyer Managing Director Lenny Sciascia said in the statement.
Andy Gottesman, a principal of the 1120 Avenue of the Americas building, said the arrangement will help “maintain the Hippodrome for many more years as a sought-after destination for top tenants in Midtown.”
Job site Indeed is the largest tenant at the building, between 43rd and 44th Streets, where it occupies more than 142,000 square feet, according to CoStar data.