Starrett-Lehigh building
From the August issue: Real estate mogul Harry Helmsley snapped up the largest manufacturing property in the city — the 2.2 million-square-foot Starrett-Lehigh Building in Chelsea — for a bargain price of $13.5 million in a foreclosure auction, 37 years ago this month.
Helmsley, president of Helmsley Spear, beat out the Chicago-based real estate investment firm that was a lender on the building and had started foreclosure proceedings. The investment firm refused to bid more than the $2.1 million mortgage it provided, paving the way for Helmsley to take control of the property at 601 West 26th Street, which was owned by Jacob Freidus.
The $13.5 million price tag included Helmsley’s payment of $2.2 million in cash, the assumption of $10.8 million in debt, plus a $500,000 loan Helmsley provide on the building that he forgave.
In 1944, the 30-year-old Freidus had purchased the property for an undisclosed sum. But by the time Helmsley came in, manufacturing was on the decline and the structure was just 60 percent occupied, with rental rates at about $1.20 per square foot.
Earlier this year, Scott Rechler’s RXR Realty agreed to buy the 1932 building — which occupies the entire block from 26th to 27th streets and from 11th to 12th avenues — for $900 million. Click here for more.
