From left: Steve Witkoff, Howard Lorber and 1107 Broadway
Lehman Brothers has reached a deal to sell the in-default debt on 1107 Broadway to the Witkoff Group and Howard Lorber’s Vector Group for about $190 million, the New York Post reported.
The deal, determined at auction yesterday, comes just days after Lehman sold its majority ownership stake in 200 Fifth Avenue, located between 23rd and 24th streets, to JPMorgan Chase. The two buildings, connected by a footbridge, make up what used to be the International Toy Center.
“We think it is one of the great opportunities we’ve seen,” Steve Witkoff, CEO of the Witkoff Group, told the Wall Street Journal.
Witkoff, who has 90 days to finalize the deal at 1107 Broadway, between 24th and 25th streets, said he plans to turn the building into high-end condominiums. The 375,000-square-foot Broadway building will also include about 20,000 square feet of retail.
Lehman originally planned to turn 1107 Broadway into condos as well, but the project never got off the ground after Lehman lent $300 million to a venture led by Tessler Developments. [WSJ] and [Post]