The Real Deal New York

Shvo, Amanresorts buy non-retail piece of Crown Building for $500M

Jeff Sutton and General Growth Properties set to close on $1.8B deal for the entire building

April 07, 2015 08:00AM

From left: Michael Shvo and the Crown Building

From left: Michael Shvo and the Crown Building

UPDATED 11:50 a.m. April 7: Michael Shvo and Russian developer Vladislav Doronin are buying the majority of the Crown Building.

Luxury condominium developer Shvo and Doronin’s Amanresorts, a hotel developer, are buying buy roughly 290,000 square feet — from the fourth through the 24th floor — for $500 million, according to the New York Post. That price comes down to $1,724 per square foot.

Last fall, Jeff Sutton’s Wharton Properties and Sandeep Mathrani’s General Growth Properties decided to buy the entire, 400,000-square-foot building, located at 730 Fifth Avenue on the corner of 57th Street, from the Winter and Spitzer families for $1.8 billion. Shvo and Doronin’s purchase is expected to close at the same time as the sale of the entire building, according to the newspaper. Shvo’s involvement will likely mean that luxury condos are coming to the Crown Building.

Eastdil Secured’s Douglas Harmon and Adam Spies marketed the building. [NYP] — Claire Moses

  • irobot

    If this is not a sign of a market top I don’t know what is

  • Marc

    Seeing Shvo’s name makes me want to sell everything I have and go live in a cave to weather the coming storm.

    • EWING

      That’s hysterical

    • EWING

      According to Shvo rates will stay under 3percent
      And there will be no correction. Jeff Is a genius both in identifying that Shvo got some fresh gelt behind him and to loosen his exposure.

  • Gino

    I knew Jeff could not close this deal himself .

    • moneytalks

      He can but doesn t like to take huge risk. At $3.2 Billion net worth, and 6 Billion in assets it is possible. Now they have to play with 125,000 SF of retail in prime Fifth Avenue.

      • richjew

        And partners that have many billions more than him.

        • Alacarte

          you so funy

  • Dani

    Doronin & Shvo will take over New York

  • Bob the Broker

    I thought Shvo was deep in debt and run out of town at the start of the economic downturn a step ahead of the tar and feathers.

  • Lorenzo

    if you all think the market is going to crash a la 2008, youre all fools. there’s too much demand for the island that is Manhattan.

    • citizen for better nyc

      they are all a bunch of low lifes. best they go back to where they came from

  • MB M&M

    To understand, Jeff paid close to 1.8 Billion for the 25 story 400,000 sqft building.
    Now Mr. Shvo and partner are acquiring 290,000 sqft floors 4 through 24 for 500 Million.
    According to this math, floors 1 through 4 and 25 are valued at 1.3 Billion.
    Are these floors paved in gold and has retail exponentially increased in value and they’re the only ones that figured it?
    Any thought s on how the math figures?

    • HitenSamtani

      The retail is worth exponentially more than the office portion. Retail rents on Fifth Ave. can hit $3,500 a foot (http://therealdeal.com/blog/2014/11/19/fifth-avenue-now-the-worlds-most-expensive-retail-address/) . Office rents are obviously a fraction of that.

      • MB M&M

        Even at $3500 a foot the value amounts to $350 million. That being the case the total value of the building is now $350 million plus $500 million for Shvo’s portion which leaves close to a billion unaccounted for. Appreciate the input Hiten.

        • moneytalks

          The ground floor is about 20 to 30,000 SF. The retail space will be close to 125,000 SF, more than 717 Fifth Avenue. Yes, the retail is worth more than 1 Billion.

  • Alacarte

    This is a scam

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