From left: William Beaver House, 25 Broad Street and the Setai Wall Street

Financial District condominium projects have found success since being converted to rentals early this year, according to the Wall Street Journal, although the Occupy Wall Street protests have dampened the trend in recent days.

The 300-unit Sapir Organization-developed William Beaver House, for example, put its 208 unsold units on the rental market this spring, and about 75 percent of them have been leased at a rate of 18 per month and $57 per square-foot.

Similarly, 25 Broad Street, the condo conversion by Kent Swig, went on the rental market earlier this year, and 104 of the 305 units have rented for about $55 per square foot. [more]

From left: Kent Swig, the site at 45 Broad Street and a rendering of Nobu Hotel and Residences

Lehman Brothers Holdings is expected to take control of a Kent Swig development site at 45 Broad Street at a foreclosure auction scheduled for next month.

Swig’s Swig Equities lost control of the site after Lehman filed to foreclose in 2009; the site was then put in the hands of a court-appointed receiver. Swig is named in the foreclosure suit, along with various organizations that have filed liens against him.

Among the other defendants are Langan Engineering & Environmental Services, New York State Department of Taxation and Finance and other tenants, occupants, contract parties, lien-holders and others that may claim an interest in the property. The lien amount is $72.5 million in total. The auction will take place Nov. 16, according to PropertyShark.com. [more]

A penthouse unit in the Sheffield and Marketing Directors President Jacqueline Urgo

Three weeks ago, the Marketing Directors unveiled the 10 penthouses on the 56th and 57th floors of the Sheffield, and The Real Deal got a sneak peek at the units and their impressive views — just as the overcast weather cleared — today (see photos above). Asking prices for the two- and three-bedroom penthouses at the condominium conversion at 322 West 57th Street range from $2.55 million to $5.25 million for a unit overlooking Central Park, and apparently buyers won’t have much room for negotiation.

“We’re hardly open to any negotiations on those units — being that they are the crown jewels of the building,” Jacqueline Urgo, president of the Marketing Directors, said. “We’re going to hold out for the best prices.”
[more]

From the September issue: In its eight years of publication, The Real Deal has covered the real estate industry in a city that’s been transformed by a massive building boom, was crippled by the subsequent bust, and is now in the midst of a tentative recovery.
The compendium of stories we’ve written runs the gamut from the record-setting building and apartment purchases during the boom, to the toppling of mega-developers during the bust, to new entrepreneurs trying to get into the real estate game during today’s fragile recovery. This month, for the anniversary of our 100th issue, we bring you some of the most compelling stories we’ve tracked in these pages, many of which have unfolded and evolved over time, much as the magazine itself has. And watch the video below to see The Real Deal Publisher Amir Korangy talk about the special process for creating the unique 100th issue cover.
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25 Broad Street

Kent Swig’s former mammoth office building at 25 Broad Street may have finally come back to life as a 305-unit rental property thanks to Lehman Brothers Holdings, the Wall Street Journal reported, after 80 percent of the 90 available units were rented in just two months.
With applications under review for the remaining units, more are now under renovation, the Journal said.
The project offers 305 one- and two-bedroom units, with 35 different floor plans and rents starting at $3,133 and $5,205 per month, respectively. 

Lehman took over the building after Swig defaulted on his mortgage in 2009. Swig paid $262.5 million to buy the former office property in 2005.

Swig had previously intended to transform it into a luxury condominium building. [more]

From left: Yair Levy, Rector Square (source: PropertyShark) and Attorney General Eric Schneiderman

A state Supreme Court judge has ordered developer Yair Levy to pay $7.4 million in restitution to the Rector Square condominium and permanently banned him from selling real estate in New York state.

Judge Joan Lobis found last month that Levy defrauded the Battery Park City condo conversion, spending millions of dollars in reserve fund money on illegal personal and general business expenses, including charge card accounts, mobile phone bills and writing checks to family members.

The judgment permanently bans Levy from selling condos or co-op projects in New York state, virtually ending a career lasting more than 30 years in the U.S. [more]

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Liz Swig, Kent Swig and 740 Park Avenue

Developer Kent Swig is facing foreclosure on the 740 Park Avenue co-op where his wife is staying during their divorce, the New York Post reported. Bank of America has reportedly taken legal action against Swig and his wife, Elizabeth, the daughter of Harry Macklowe, and is seeking to repossess the apartment and evict Elizabeth since the former couple haven’t made payments on their loans in 22 months, according to a lawsuit filed in Manhattan federal court.

The couple signed documents for a consolidated loan of $4.7 million on their apartment in 2007, but stopped paying by August 2009. They also ceased making monthly payments of more than $62,000 on a short-term, January 2009 loan for $12.8 million, the Post said. [more]

Protesters were in force Monday night as the State of Israel Bonds, a prominent charity for real estate folks, celebrated its 60th anniversary honoring Denis Hughes, president of the New York State AFL-CIO.

Kent Swig, president of Swig Equities and chairman emeritus of Israel State Bonds, was on hand to help the auction of bonds as guests had pledges ranging from $10,000 to $250,000.

The evening began as protesters outside Gotham Hall, at 1356 Broadway, objected to using state-controlled pension funds to buy Israel Bonds. Marc Becker [more]

Kent Swig

Savanna Investment Fund has purchased the senior mortgage loan on Kent Swig’s troubled 80 Broad Street office tower at a discount and is likely to begin foreclosing on the property within the week. Sources told the Post that Savanna received a 12 percent discount off of the $75 million face value of the loan, which has been in special servicing with J.E. Robert Companies since last winter. Swig led a partnership that purchased the 410,000-square-foot building for $70 million in 2004, but by 2010, the property was appraised for just $67 million and entered into “covenant default” even though Swig was still making mortgage payments at the time. [more]

Kent Swig and 25 Broad Street

Kent Swig’s stalled condominium conversion project at 25 Broad Street is back in action as a rental building. A court-appointed receiver has tapped developer LCOR to put the 20-story building back on the market, and according to the Wall Street Journal, the leasing office opens today. The project offers 305 one- and two-bedroom units, with 35 different floor plans and rents starting at $3,133 and $5,205 per month, respectively. There are also hefty concessions: one month’s free rent, plus the elimination of broker fees for renters who sign on for one or two years. [more]