The Real Deal New York

Puttin’ off the Ritz: Bistricer’s Clipper Equity backs out of $400M deal

Stonehenge took 43-story Midtown rental tower off the market: sources

November 18, 2016 05:15PM
By Mark Maurer

David Bistricer, Ritz Plaza at 235 West 48th Street and Ofer Yardeni

David Bistricer, Ritz Plaza at 235 West 48th Street and Ofer Yardeni (Credit: Studio Scrivo)

UPDATED, 3:32 p.m., Nov. 21: David Bistricer’s Clipper Equity recently backed out of a “soft contract” to acquire the 43-story Midtown West rental tower the Ritz Plaza for about $400 million, sources told The Real Deal.

Bistricer’s firm opted not to proceed with the purchase of the 479-unit, 475,200-square-foot property at 235 West 48th Street from Ofer Yardeni’s Stonehenge Partners, just prior to signing a hard contract, according to multiple sources familiar with the talks.

Stonehenge Partners, which had hired Eastdil Secured in April to market the property for sale, has since taken it off the market altogether, sources said. Eastdil is said to no longer be involved, sources added.

The reason the deal went south was unclear, though one source said it was regarding Bistricer’s concerns that he would not be able to secure financing in time for closing.

The soft contract was signed in September, sources said. The per-square-foot price would have come out to about $840.

Clipper, Stonehenge and Eastdil declined to comment.

Carter Management developed the building ground-up in the late 1980s and then sold it to Stonehenge in 1996. The property is largely residential, but also has an office, retail and garage component. Studios rent for around $3,050 per month. The U.S. General Services Administration leases 20,000 square feet of office space.

Earlier this month, Clipper closed on the $172.5 million purchase of the 155-unit Upper West Side rental the Brewster at 21 West 86th Street. New York Community Bank provided a $104 million loan.

It isn’t unusual for real estate investors to get cold feet before the hard contract is in place. Notably, Joseph Sitt’s Thor Equities backed out the Caiola portfolio deal, which Blackstone ultimately closed on for $690 million.

And Michael Shvo backed out of the 685 Fifth Avenue office deal, which Gulaylar is said to be near to closing on for $160 million.

Rich Bockmann contributed reporting.

Correction: A previous version of this article incorrectly identified the developer of the Ritz Plaza. It is Carter Management. 

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