Carol Cohen and 737 Park Avenue

Carol Cohen’s former landlord, who last year sued the real estate broker for allegedly misstating her income in order to keep a rent-stabilized apartment, has appealed the September dismissal of the case.

The landlord, Katz 737 Corp., filed an appeal in the New York Supreme Court Appellate Division Feb. 1, claiming that Cohen and husband, Lester, had hidden their true income “in a manner equivalent to “tax evasion,” and the dismissal of the case by a judge Sept. 26 2011 should be overturned. [more]

From left: One57 and Extell Development President Gary Barnett; the Touraine and Toll Brothers CEO Bob Toll; and 737 Park Avenue and Harry Macklowe

In an effort to increase control and decrease costs, big condominium developers are increasingly using their own sales teams for new projects rather than hiring outside brokerages to market the units, according to the Wall Street Journal.

For example, Extell Development, which relied on the Corcoran Group to market most of the condos it built throughout the last decade, has hired its own sales staff for its massive One57 development.

“To be frank, there is an awful lot of money in sales commissions and we want to get a piece of that ourselves,” Extell Development President Gary Barnett said. … [more]

Brown Harris Stevens’ Carol Cohen and 737 Park Avenue

The lawsuit filed against former Corcoran Group star broker and now Brown Harris Stevens senior vice president Carol Cohen, which led to her reported dismissal from Corcoran at the close of 2010, has been thrown out, according to documents filed by the New York state Supreme court earlier this month.

The lawsuit, filed by Katz 737 Corp., the landlord at Cohen and her husband Lester Cohen’s apartment building, in 2010, alleges that the couple had repeatedly lied about their income on state forms in order to prevent a rent increase at their $3,060 per month apartment at 737 Park Avenue, between 71st and 72nd streets. The landlord claimed that they had reported their combined income as being less than $175,000 per year to avoid a rent hike at the unit, which they had lived in since 1989.

The dismissal rendered those claims insufficient to prosecute. … [more]

A Russian developer is accusing the powerful California real estate investment firm CIM Group of breaking a verbal agreement to work together to build on a vacant site at 33rd Street and Madison Avenue, and instead swooping in to buy the $29 million mortgage and foreclose on it, a new lawsuit filed yesterday in New York State Supreme Court says.

NMP-Group, controlled by Russian developer Natalia Pirogova, says in the suit that CIM Group used privileged information to snap up the note in August from lender Garrison Investment Group despite making promises in March 2011 to work with NMP in a joint venture to build a mixed-use tower at the site, at 172-176 Madison Avenue. … [more]

Harry Macklowe and 737 Park Avenue

Harry Macklowe’s development firm that is primed to carry out the $360 million condominium conversion of the pre-war apartment building at 737 Park Avenue, filed its first lawsuit related to the building this week, claiming a married couple living in a market-rate apartment is refusing to leave even though their lease expired last month. Macklowe’s company for the project, 737 Park Avenue Acquisition, filed the lawsuit Tuesday in New York State Supreme Court against Barry and Joan Shalov, seeking an order from the judge to force them out of the 21-story Lenox Hill building, at the corner of 71st Street, despite their desire to stay. Condo conversion experts predicted that it would not be easy converting the occupied building, with 103 apartments. The fact that Macklowe had to resort to a lawsuit to remove market-rate tenants living with an expired lease — presumably with no rights to stay — only underscores the potential challenges…. [more]

Developer Harry Macklowe and 737 Park Avenue

The London-based Children’s Investment Fund inked its first New York City real estate investment this month, providing $250 million in first mortgages for Macklowe Properties’ condominium conversion of the luxury apartment building 737 Park Avenue in Lenox Hill.

The fund, run by low-key hedge fund manager Christopher Hohn, makes investments in a wide range of industries globally, and gives a portion of its profits to children’s charities around the world.

“It is the first direct real estate investment we have made in New York,” Martin Frass-Ehrfeld, a partner with the fund, said. It is not the first in the United States, however. … [more]

From left: Harry Macklowe, 737 Park Avenue and 150 East 72nd StreetDeveloper Harry Macklowe’s firm Macklowe Properties filed plans with Attorney General Eric Schneiderman’s office to convert rental buildings at 737 Park Avenue and 150 East 72nd Street into condominiums, Bloomberg News reported. If the offering plan is approved by July 2012, closings could begin at the Upper East Side properties by late 2012 or 2013.
“The expectation is that we probably will be out of the recession by then and the economy will be booming and it will just be the right time to start selling apartments,” said Stuart Saft, head of the real estate group at Dewey & LeBoeuf LLP, who drafted the plans for Macklowe…. [more]

Harry Macklowe and 737 Park Avenue

Developer Harry Macklowe has finally closed on his purchase of 737 Park Avenue for $360 million, the Post reported, one of the city’s pre-eminent rental apartment buildings. Los Angeles-based CIM Group, the developer of the Drake Hotel site, is thought to be Macklowe’s investment partner in the deal.

Macklowe is expected to convert the 21-story, 103-unit building into condominiums. The majority of the building’s units are currently market-rate rentals though some are rent-stabilized.

The building, on the corner of 71st Street, was previously owned by the Katz family who, for a long time, couldn’t come to a decision on whether or not to sell…. [more]

Developer Harry Macklowe closed this afternoon on the $70 million acquisition of a 34-unit rental apartment building at 150 East 72nd Street that his Macklowe
Properties expects to convert to condominiums.

Macklowe financed the Lenox Hill purchase and anticipated rehabilitation of the
72,000-square-foot, pre-war building through a total of $120 million in equity
and debt, according to a statement from Macklowe’s exclusive advisor on the
transaction, Howard Michaels, chairman of investment banking firm Carlton
Group…. [more]

Harry Macklowe has struck a deal to buy 737 Park Avenue for between $250 million and $255 million, sources tell Crain’s, and plans to convert the 108 rental units into condominiums. Macklowe’s interest in the property was widely reported, but details of the sale price and his intentions for the property are new. It’s the second building in the area that Macklowe has purchased in the hopes of doing a condo conversion, as last month Macklowe purchased a property at 150 East 72nd Street near Lexington Avenue for $70 million. Macklowe also bought 953-961 First Avenue with Prudential Douglas Elliman chairman Howard Lorber earlier this year. In purchasing 737 Park, 30 percent of which is comprised of rent stabilized units, Macklowe joined an undisclosed equity partner, according to Crain’s. … [more]