The Shuberts own the entire end of that block including the Frankie and Johnny's building. If you look at the parking garage you'll deduce that it is in the shape of a theatre which used to stand there.
The Shuberts own lots of land and buildings around town using various corporate names. For instance the building next to (and cantilevered over) the Broadway Theatre sits on land that the Shuberts own and collect lease money from. This is at 52nd and Bway. Also several blockfronts on Broadway near Columbia University and supposedly some blockfronts on 7th Ave in the garment district. They own lots of land. It really is a real estate company.
Let's get the theatre built before we name it. Even if every wind blows favorably, it will take five years. And will it be a freestanding theatre or part of a larger building?
As for the DOJ ruling, that was lifted quietly in the mid 80s just in time for the Shuberts to pass on bidding to operate the Marquis. I have always wondered why they passed. They said it was because audiences would have to enter through the hotel and because the bathrooms were in the lobby. Oh please. I wonder what the real reason was.
"If my life weren't funny, it would just be true. And that would be unacceptable."
--Carrie Fisher