From left: Howard Michaels and the Lipstick Building
SL Green Realty is selling the land beneath the Lipstick Building in Midtown, the New York Post reported. The commercial landlord has tapped the Carlton Group’s Howard Michaels to handle the marketing.
The land could attract a record-breaking price, as investors are now seeking stable investments in New York City, the Post said. [more]
Already behind the controversial MoMA Tower and a new Bryant Park tower, perpetually under-the-radar real estate firm Hines Interests is undertaking another major project, the New York Observer reported in a lengthy profile, by reviving the stalled 56 Leonard Street condominium project in Tribeca.
The Herzog & de Mueron-designed 57-story condo was first announced by developer Alexico Group a month before Lehman Brothers collapsed, and even sold four of its planned 145 units. But the recession took the plans for the building down with it, and the site currently has a foundation and little else. Typical of the understated firm, Hines refused to divulge much detail other than to say it would become another of Herzog & de Mueron’s “global landmarks.”… [more]
SL Green Realty has found a buyer for its leased fee interest in a 26-story, 193,000-square-foot property at 292 Madison Avenue and 41st Street for $85 million, or $440 per square foot, GlobeSt.com reported, the sale of which is expected to generate approximately $22.7 million in net proceeds for the company.
Eastdil Secured represented the company in the pending transaction.
SL Green paid Gramercy Capital $19 million for the interest in the building in 2010 as part of a deal for $391 million worth of office and retail, including the land and lease fee for the Lipstick Building at 885 Third Avenue and for 2 Herald Square…. [more]
A portfolio of 195 properties is falling out of Gramercy Capital’s grasp after the real estate investment trust failed to pay off $790 million in loans, the company announced today. According to Bloomberg News, lenders SL Green, Goldman Sachs Mortgage, Citicorp North America and KBS Debt Holdings “may immediately seek to exercise available remedies, which will likely include attempting to foreclose on all or substantially all the collateral,” Gramercy said in a statement. The move comes as analysts say lenders are increasingly switching gears from the so-called extend and pretend strategy to taking back control and unloading their distressed assets. … [more]
Kuwaiti investment firm Fosterlane Management, the former owner of the Lipstick Building and 350 Park Avenue, is getting back into the New York City real estate game with the purchase of Hines Interests’ 750 Seventh Avenue for $485 million, or roughly $808 per square foot, the Post reported. Earlier this week, the Observer reported that the 600,000-square-foot tower near 49th Street tower was in contract to sell to an anonymous offshore investor. Hines purchased the 36-story tower, half of which is occupied by Morgan Stanley, for $150 million in 2000 through a partnership with General Motors. … [more]
The new owners of the Lipstick Building, the 636,000-square-foot Third Avenue office tower where Bernie Madoff carried out his massive fraud, are making a push to rent out the building’s empty space with the help of $15 million in new capital and a lobby redesign, according to the Wall Street Journal. The owners, who are also now looking for other New York investment opportunities, are Daniel Elsztain, part of the family that is Argentina’s largest landlord, and Paul and Maurice Marciano, the founders of retailer Guess…. [more]
From left: SL Green CEO Marc Holliday, the Lipstick Building at 885 Third Avenue and 292 Madison AvenueSL Green Realty has agreed to buy close to $391 million worth of office and retail investments from Gramercy Capital. As part of the deal, SL Green will own the land and lease fee for three properties — the Lipstick Building at 885 Third Avenue, 2 Herald Square and 292 Madison — but will also assume about $266 million in debt, Crain’s reported. SL Green will pay $39 million to buy Gramercy’s 45 percent joint venture interest in the Lipstick Building, $26 million for their interest in 2 Herald Square and $19 million for 292 Madison’s land and lease fee. … [more]
The owner of 885 Third Avenue, the 34-story office building where Bernard Madoff executed a $65 billion Ponzi scheme, filed bankruptcy today, according to Bloomberg News. Metropolitan 885 Third Avenue Leasehold LLC, the owner of the famed tower known as the “Lipstick Building,” listed as much as $500 million in debts and assets today while filing for Chapter 11 bankruptcy in a Manhattan court. Foreclosure on the building has loomed for months, experts say, after the owner defaulted on a $210 million loan earlier this year. … [more]
The Royal Bank of Canada has sued to force a sale of the Lipstick Building at 885 Third Avenue, the 34-story office tower that served as the backdrop for Bernie Madoff’s $65 billion Ponzi scheme, according to Bloomberg news. Haim Revah’s Israel-based Metropolitan Real Estate Investors, which purchased the property for $648.5 million from Tishman Speyer in 2007, defaulted on a $210 million loan from Toronto-based Royal Bank. Revah’s group also has a $60 million loan from Goldman Sachs and pays $11 million per year in rent to SL Green and Gramercy Capital for the ground beneath the tower. Revah has been facing shortfalls in rent revenue this year — in part because of the 16,000-square-foot trading floor still vacant after Madoff’s departure. Royal Bank is now seeking a court-appointed receiver to oversee the property and to arrange a sale. [Bloomberg]
… [more]
The Royal Bank of Canada has sued to force a sale of the Lipstick Building at 885 Third Avenue, the 34-story office tower that served as the backdrop for Bernie Madoff’s $65 billion Ponzi scheme, according to Bloomberg news. Haim Revah’s Israel-based Metropolitan Real Estate Investors, which purchased the property for $648.5 million from Tishman Speyer in 2007, defaulted on a $210 million loan from Toronto-based Royal Bank. Revah’s group also has a $60 million loan from Goldman Sachs and pays $11 million per year in rent to SL Green and Gramercy Capital for the ground beneath the tower. Revah has been facing shortfalls in rent revenue this year — in part because of the 16,000-square-foot trading floor still vacant after Madoff’s departure. Royal Bank is now seeking a court-appointed receiver to oversee the property and to arrange a sale. [Bloomberg]
… [more]
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