The Real Deal New York

Yeshiva, imperiled by Madoff, to sell more buildings

University is still paying off $100M loss incurred by Ponzi schemer

January 22, 2014 05:56PM

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yeshiva

500 West 185th Street (Inset: Bernie Madoff)

Still struggling after losing roughly $100 million in one-time trustee Bernard Madoff’s Ponzi scheme, Yeshiva University plans to sell several properties on the main campus, at 500 West 185th Street in Washington Heights.

Companies have liquidated their investments in the university’s debt, particularly after Moody’s Investors Service downgraded it to junk bond status earlier this month. The school’s deficit was $105.9 million in 2012; $46.7 million in 2011; and $107.5 million in 2010.

In 2012, an undisclosed developer bought the 18,000-square-foot 237-241 East 34th Street, a lecture hall, for $15.5 million, as The Real Deal reported.

In February 2013, the modern orthodox Jewish institution sold two more buildings, both office buildings in Midtown South between Fifth and Sixth avenues, for a combined $115 million. The month after, the school sold another two office properties to a partnership of ClearRock Properties and Juster Properties for $87.5 million. [Bloomberg News]Mark Maurer

  • David Brown

    I don’t mean to be disrespectful of the writer but this headline and article makes no sense whatsoever. Yes, the University may have had a one time loss of $100MM five years ago due to Madoff. However that can’t account for the recurring $100MM a year operating deficits. It is clear that the University is selling assets to fund its operating deficits, not because it once lost money to Madoff.

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