N.Y. Coliseum Sold in City’s Biggest Deal

Boston Properties agreed today to buy the New York Coliseum for $455 million--the largest real estate deal in city history--and build two office towers containing a shopping mall, a hotel and condominiums.

“Obviously it’s one of the greatest sites in New York,” said Boston Properties Chairman Morton Zuckerman, “the single largest and most dramatic development that has come along in New York City in the last 25 or 30 years.”

Mayor Edward Koch joined the developers at City Hall for the announcement.

In addition to the $455-million price, Phibro-Salomon Inc. agreed to a 15-year lease worth $1 billion, making the deal the largest in the country for a site that size.

270 Luxury Condominiums

Boston Properties will demolish the Coliseum at the intersection of Broadway and Columbus Circle and build two towers, one 72 and one 57 stories tall. The towers will house corporate offices, a shopping gallery, a 225-room hotel and 270 luxury condominiums.

The developers agreed to waive $75 million to $80 million in tax credits they were entitled to and will finance a $25-million renovation of the 59th Street subway station.

The building will generate $100 million in property taxes each year.

The site of the Coliseum is currently owned by the city and the Metropolitan Transportation Authority. The facility was made obsolete by construction of Jacob K. Javits Convention Center, scheduled to open in 1986.