Richard Marin, the ousted CEO of developer Africa Israel USA, is suing his former employer for $1.25 million plus damages over an alleged breach of contract, the Wall Street Journal reported. According to court papers filed last week, Marin, who was hired in late 2008, said Africa Israel fired him “in order to cover up wrongdoing that the executive discovered and reported” without paying him the bonus he deserved. Africa Israel has denied the charges — accusing Marin of trying to sue his way out of paying back a $500,000 loan to the company — and said it plans to file a motion to have the case dismissed. [more]

Africa Israel USA is “actively looking at new opportunities” for residential conversion projects in New York City, new CEO Tamir Kazaz told the New York Times. Kazaz, who stepped up to the company’s helm after Richard Marin resigned suddenly late last year, was relatively tight-lipped when it came to his predecessor, but characterized the split as the company’s decision. (Sources had told the Wall Street Journal at the time of Marin’s departure that it was unexpected and came amid disagreements with senior management). Now, with a third of the debt it had two years ago, Lev Leviev’s development company is moving forward and eyeing a Financial District office building for a condominium conversion, Kazaz said. [more]

Richard Marin, chairman and CEO of Africa Israel USA has resigned suddenly and left the company after just two years on the job, the Wall Street Journal reported. Tamir Kazaz, the company’s CFO, will take over as CEO but Africa Israel does not plan to appoint a new chairman. It doesn’t appear to have been an entirely amicable split, with sources saying Marin’s departure came unexpectedly and amid disagreements with senior management. [more]

From left: former New York Times building at 229 West 43rd Street; Richard Marin, CEO
of Africa-Israel; and the Clock Tower

Africa-Israel USA is negotiating with less than six management companies about running the hotel portion of the former New York Times building at 229 West 43rd Street and hopes to choose one next month, said Richard Marin, the company’s CEO. The company is also working to secure financing so it can redevelop the Clock Tower — formerly the Met Life headquarters — on Madison Square Park, into more down-scale condos, a different project than the more upscale model the company proposed in 2007, Crain’s reported. Before the recession hit in 2007, Africa-Israel was one of the most prodigious buyers of high-profile properties, purchasing the former New York Times Building, the Apthorp complex on the Upper West Side and the Clock Tower. But since the recession, the company has run into problems with its holdings. As part of its efforts to redesign its projects, Africa-Israel hired Peter Rosenberg as managing director of development. The Clock Tower will be among the projects he’ll supervise. [Crain's]

[more]

From the February issue: It’s been a sort of parlor game in New York’s real estate community for
some time: speculating on whether peak-market buyers will hold on to
their highly leveraged properties.
Then, in a move that shook the industry last month, Tishman Speyer
Properties and BlackRock Realty decided to turn over the keys to the
$5.4 billion Stuyvesant Town and Peter Cooper Village.
But not everyone has gone this route. Other overextended borrowers
have kept control of their properties following a debt restructuring,
including developers Lev Leviev and Joseph Moinian.
As part of a workout — the complex process that’s often decided by
the leverage each party has in the development — the bank or private
equity firm must weigh its options.  [more]