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December 2011

December 2011 » Market Analysis » NYC Buildings For Sale

December 2011 New York Buildings For Sale

NYC Buildings For Sale

A Times Square Hotel, the 47-room Hotel 41 at 206 West 41st Street, will be auctioned Dec. 5, after lender Crane, A.G., a 50 percent owner of the hotel, filed to foreclose on developer Benjamin Soleimani's interest in the property. The 11,562-square-foot Hotel 41 building, on a side street just below Times Square, was purchased by Soleiman's 206 West 41st Street Hotel Associates in 2008 and underwent a complete transformation by architect Andrew Pollack and Soleimani with ultra-modern interiors.

ATCO is selling the Atlas Terminals, an industrial park adjacent to the Atlas Park mall it developed in Glendale, Queens five years ago, but eventually lost in foreclosure. Macerich, which took over Atlas Park mall in 2009, would likely be interested in the industrial terminals, composed of 21 buildings totaling 500,000 square feet on 11 acres near the mall at 8000 Cooper Avenue.

Extell Development is putting its leasehold interest at 175 Varick Street on the market, following a large leasing deal. The asking price wasn't immediately available. Earlier this month, Extell found a tenant, WeWork, a flexible office space provider, to take a 75,000-square-foot, 15-year lease at 175 Varick Street.

New York Buildings sold

A group of Israeli investors is set to purchase the 1.5 million-square-foot Long Island City office tower One Court Square from SL Green Realty. Among the investors is Joel Schreiber, owner of real estate investment firm Waterbridge Capital, and David Werner, a private real estate investor from Brooklyn. SL Green took control of the property when it acquired the real estate investment trust Reckson in 2006. Citibank leases the entire 50-story building. Estimated it would close for slightly less than $500 million.

Tishman Speyer, in partnership with Square Mile Capital and the Modell family, has completed the $415.5 million sale of the 670,000-square-foot Two Gotham Center in Long Island City to H&R, a Canadian Real Estate Investment Trust listed on the Toronto Stock Exchange

Lloyd Goldman is adding to his substantial holdings with the $10.5 million acquisition of the retail condominium at 300 East 79th Street from the building's developer, the Chetrit Group. Goldman's BLDG went into contract in August and closed on the purchase of the 5,976-square-foot unit Oct. 5, city records published yesterday show. The retail condo, with ground-floor and lower-level space and occupied by Capital One bank, is in the 34-unit, 18-story residential building at the corner of 79th Street and Second Avenue. The building was developed by the Chetrit Group and opened in 2008.

Developer Steve Cheung purchased a vacant site for $8.3 million where a bankrupt Brooklyn company sought to build a Starwood Aloft Hotel in Long Island City during the real estate boom. The L-shaped parcel at 29-37 41st Avenue that has 205,032 square feet of development rights. The price comes out to about $40.48 per square foot. Cheung has been developing residential projects for about a decade in Queens in areas such as Flushing and Ridgewood, including the five-story mixed-use project at 311 Saint Nicholas Avenue in Ridgewood.

A 54,850-square-foot Williamsburg commercial carpet warehouse at 204 Wythe Avenue was purchased by Area Property Partners and is slated to be transformed into a five-story, 157-unit building, It was not immediately clear whether the property would be a condominium or a rental. Area purchased the warehouse, between North 4th and 5th streets in Williamsburg, for $27.5 million and has filed an application with the city for the redevelopment of the site. Architecture firm SLCE will be designing the building,

Dune Real Estate Partners purchased the loan for a portfolio of 36 apartment houses on the Upper West Side for close to $105.1 million -- a 45 percent discount, the loan is valued at $192.1 million. The buildings concerned, which house a total of 1,083 units, were bought by the Pinnacle Group with the Praedium Group during the real estate boom. Pinnacle alone was thought to have purchased $1 billion in distressed buildings in Upper Manhattan and parts of the Bronx between 2004 and 2006, coming under extensive criticism for attempts to hike rents after fudging capital improvements.

Normandy Real Estate Partners has gone into contract to purchase a 275,000-square-foot, 16-story office building at 1370 Broadway for $125 million. The seller. The property has about 22 percent of the space available to lease. Large tenants there include apparel retailer Esprit and executive office firm Jay Suites

Global One Real Estate Fund, an entity controlled by Robert Nelson of Nelson Development, has purchased the Lafayette-Boynton Houses, a middle-income rental complex in the Bronx. Global One paid Area Property Partners $51.5 million for the 972-unit property, according to city property records, in conjunction with a joint venture between L + M Development Partners and Citibank..

The Klein Group paid $20 million for four retail condominiums at the residential building the District, at 111 Fulton Street in the Financial District. The four individual condos are comprised of 17,200 square feet of ground-floor space and 4,620 square feet on the lower level. Currently, about 45 percent of the total space is vacant.

Crown Acquisitions and Centurion Realty purchased the site of the city's first Apple store for $75 million. Apple is renovating and expanding the 30,000-square-foot space at 103 Prince Street and is currently operating out of a temporary location a block away, at 72 Greene Street. The building was previously owned by Westchester-based Ingersoll Realty, which had leased it to the U.S. Postal Service from 1975 through 2000.

Young Woo & Associates has sold the retail space at 72 Wall Street in the Financial District to Best Work Holdings, a suspected affiliate of the company, for $14.5 million. Best Work is registered at 72 Wall Street and the deed was signed by Charlotte Cheung, a Young Woo official. Young Woo purchased 72 Wall Street, also known as 73 Pine Street, and 70 Pine Street from American International Realty for $150 million in 2009. The space totals 6,100 square feet.

Billionaire Leon Charney, has sold a development site at 120 West 41st Street to Stanford Hotels. Stanford, which operates Hilton, Marriott and Sheraton hotels all over the country, paid $19.5 million for the property. The company is said to be planning a 125-room hotel on the site, assembling air rights from a nearby theater. The acquisition is Stanford's first foray into the New York market. Charney, a real estate developer had been planning a 22-story, $90 million boutique hotel at the site under an agreement with Minnesota-based Graves Hospitality.

CIM Group paid British retailer Turnbull & Asser $32.4 million for a townhouse at a strategic site near the Drake Hotel. The five-story, 8,580-square-foot building, located at 42 East 57th Street, contains four commercial condo units. Turnbull & Asser, a high-end clothing store, has owned and occupied the whole building since 2008, when it purchased it from antiques dealer Paul Schaffer for $31.5 million. The acquisition may prove to be important for CIM and Harry Macklowe, the developers of the Drake Hotel site at 440 Park Avenue, which may be the most valuable development site in New York City.

Jared Kushner has partnered with Los Angeles-based CIM Group to acquire a Soho office building for $50 million. The 130,000-square-foot office tower at 200 Lafayette Street, on the corner of Broome Street, is being sold by investors John Zaccaro Sr. and John Zaccaro Jr. They bought it for $20.5 million in 2006.

Andre Balazs has acquired a hotel and is converting it to the Standard East Village. Balazs will spruce up the 105 rooms, renovate the public space and redo the recently opened restaurant on the 21-story building's ground floor. He took control of the hotel less than a year after Westport Capital Partners bought it for $70.9 million.

Multi-Employer Property Trust, which last month bought the site at 309 Fifth Avenue, between 31st and 32nd streets, is the lead investor in the project, a 35-story residential rental tower on Fifth Avenue , which is being developed by Urban Development Partners. The plan calls for a 122,000-square-foot property with 165 rental units and 10,400 square feet of retail. It is slated to open in September 2013.

A portfolio of 11 buildings in the Highbridge section of the Bronx has been sold for roughly $46.8 million. The buildings are along Sheridan Avenue and the Grand Concourse between 167th and 170th streets, north of Yankee Stadium, and have a total of 486 units. Chestnut Holdings is listed as the buyer of all 11 buildings. The Riverdale-based firm, led by CEO Jonathan Wiener, nearly purchased the distressed, 10-building Milbank portfolio in Kingsbridge last year.

The city has sold the Staten Island development site that formerly housed a U.S. Naval Base to Ironstate Development for $11 million. New Jersey-based Ironstate will build a $150 million complex on the 7-acre waterfront site known as Homeport, in the Stapelton section of the borough. It will include 900 residential rental units, 30,000 square feet of retail, 600 parking spaces and a public plaza. The city will also invest $32 million for infrastructure improvements to create a new waterfront esplanade in Homeport.
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