The Real Deal New York

Posts Tagged ‘1107 Broadway’

  • Witkoff closes on 1107 Broadway for $191M

    September 28, 2011 02:10PM

    From left: Steve Witkoff, founder of the Witkoff Group, 1107 Broadway, Yitzhak Tessler of Tessler Developments and Eastdil Secured’s Adam Spies and Douglas Harmon

    Steve Witkoff’s Witkoff Group has completed its purchase of part of the former International Toy Center building from Lehman Brothers Holdings for $191 million, Lehman announced yesterday, following a bankruptcy auction by Eastdil Secured in June. Witkoff is planning a $290 million condominium conversion of the property, at 1107 Broadway, featuring 145 units, in collaboration with a Morgan Stanley real estate fund.

    Eastdil Secured brokers Adam Spies and Doug Harmon represented the seller in the deal, and brought the buyer and seller together.

    The closing of the 16-story office building follows the sale of 200 Fifth Avenue earlier this month, which was previously the main Toy Center building, for $726 million. … [more]

    Comments
  • The third annual GreenPearl New York event titled “Beyond Distress” was attended by over 450 real estate professionals. Witkoff Group Chairman Steve Witkoff delivered the keynote address, focusing on his acquisition of the International Toy Center at 1107 Broadway from Lehman Holdings. Mark Gorton, founder of Tower Research Capital, and the originator of Limewire — an early file-sharing program that resembled Napster — discussed the impact closing parts of Times Square to automobiles has had on businesses and the environment.

    The event’s first panel, “Battlefield for New York,” included an impressive list of real estate experts, including Faith Hope Consolo, chairman of the retail group at Prudential Douglas Elliman.

    Afterwards, Ryan Slack, the CEO of GreenPearlEvents, confided that attendance was down from the first year’s event — “The Distressed Real Estate Summit” — which attracted over 750 attendees. He speculated that the difference is probably due to the fact that a lot of those individuals are either out of the industry or have realized that the deals for forty cents on the dollar just never materialized. – Marc Becker[more]

    Comments
  • Q & A with developer Yitzhak Tessler

    September 07, 2011 01:52PM

    Yitzhak Tessler and 1107 Broadway

    Yitzhak Tessler, the 62-year-old CEO and president of Tessler Developments, spoke with The Real Deal in his first face-to-face interview since he started building in New York more than a decade ago.

    The builder of projects such as 240 Park Avenue South decided to speak up, he said, to challenge the reporting surrounding 1107 Broadway, his failed condominium conversion of one of the International Toy Center buildings that became mired in the economic downturn and the Lehman Brothers Holdings bankruptcy. He was frustrated with the assertion that he defaulted on the Lehman Brothers loan, saying the story was more complicated. In the end, each side claimed the other owed it money.

    In addition, Tessler answered questions about the Chetrit brothers, with whom he frequently partnered on deals, and his future development plans in Manhattan. … [more]

    Comments

  • Steve Witkoff and 1107 Broadway

    The Witkoff Group, owner of one of the International Toy Center buildings located at 1107 Broadway, is joining forces with a Morgan Stanley real estate fund for a $290 million condominium conversion of the property featuring 145 units, the Wall Street Journal reported. The collaborators are still searching for a financing partner, but are expected to close the deal in the next month.
    Witkoff acquired the 16-story, 350,000-square-foot property for $190 million in a one-day auction in June by seller Lehman Brothers. A number of high-profile bidders attended the event, including CIM and William Macklowe, SL Green Realty, and L&L Holdings.
    Witkoff and Morgan Stanley anticipate spending $100 million to renovate the building, the Journal said. … [more]

    Comments

  • 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. … [more]

    Comments
  • Lehman Brothers has sold its 90-plus percent stake in the former International Toy Center at 200 Fifth Avenue to JPMorgan Chase, in a deal that values the building at $700 million, according to the Wall Street Journal. Lehman had reportedly been shopping the building at the corner of 23rd Street that it bought for $480 million in 2007 through Eastdil Secured’s Adam Spies and Doug Harmon. At one point it appeared the failed investment bank would lose millions on the building as it struggled through vacancies in 2009. But an expensive interior upgrade and improving market helped lure tenants like Eataly and Tiffany & Co. to the building, instantly raising the building’s profile. It’s unclear whether the costly revamp sucked all potential profit from the trade. … [more]

    Comments
  • Having just leased the first 10 apartments at 25 Broad Street last month, Lehman Brothers Holdings lives on and is looking to make some profit from prime New York properties, and perhaps pay off some creditors, according to the New York Observer.
    Set to update a bankruptcy court on plans next week, Lehman has apparently shifted its tactics. The firm is moving to sell its share of key Manhattan assets such as the old International Toy Center at 200 Fifth Avenue and 1107 Broadway, and is quietly considering a new development at 235 West Broadway in Soho, the Observer reported. … [more]

    Comments
  • alternate textThe former Toy Building at 1107 Broadway and developer Yitzchak Tessler (building photo source: PropertyShark)

    L&L Holding has submitted a stalking-horse bid for 1107 Broadway, the vacant, 16-story former Toy Building that’s slated to be sold in a public foreclosure auction later this month. According to the Post, L&L, which owns the 1107 Broadway’s more financially stable sister building, 200 Fifth Avenue, across the street, bid $161.5 million for the property, where Lehman currently holds $343 million in debt. Another buyer would have to offer above $164.5 million in order to win the building, which is owned by a partnership led by Yitzhak Tessler that also includes investor Joseph Chetrit. … [more]

    Comments
  • A tale of two Toy Buildings

    May 17, 2011 09:55AM
    alternate textThe former Toy Building at 1107 Broadway and developer Yitzchak Tessler (building photo source: PropertyShark)

    The estate of Lehman Brothers believes the 200 Fifth Avenue part of the former International Toy Center has already rebounded enough to be worth unloading, but its vacant sister building at 1107 Broadway is a different story entirely. According to the Post, the bank’s scheduled June 6 foreclosure auction of $137 million in mezzanine debt at the 16-story property doesn’t mean it will breathe new life any time soon. “The foreclosure is really to pressure the owners to make a comprehensive deal,” one source explained. “Lehman has to put the debt on the market, but it isn’t something you’d likely buy because then you’d still have to get control of the senior loan,” another said. … [more]

    Comments

  • Yitzchak Tessler and 1107 Broadway

    Citibank has filed for an injunction against the former Toy Building to
    block the landlord, Yitzchak Tessler, from … [more]

    Comments
  • alternate textThe former Toy Building at 1107 Broadway and developer Yitzchak Tessler (building photo source: PropertyShark)

    Developer Yitzchak Tessler is facing multiple challenges in his effort
    to hold on to the condominium conversion project at the former Toy
    Building at 1107 Broadway overlooking Madison Square Park. The
    bankrupt lender Lehman Brothers Holdings sued Tessler and his company
    1107 Broadway LLC yesterday to foreclose on a $136.8 million senior
    loan. … [more]

    Comments
  • The stalled condo conversion project at 16-story 1107 Broadway is still vacant, save for a bank branch on the ground floor. The former northern Toy Building, purchased for $235 million by developer Yitzchak Tessler in 2007, is now considered a “troubled asset” by real estate research firm Real Capital Analytics, and industry insiders told the Post that the project is unlikely to emerge from its current state any time soon. It’s possible, they said, that Joseph Chetrit, who owned the building before Tessler, may have retained some sway after the deal, and the building’s $343 million in debt to Lehman Brothers Holdings is up in the air. “The debt was carved up in a confusing way where no one knows what will happen, and there’s a lot of finger-pointing going on,” one source said. [Post]

    Comments
MENU