Equity Residential Chairman Sam Zell and 400 Park Avenue South
One of unionized labor’s harshest critics, Equity Residential Chairman Sam Zell has chosen union labor to construct the $190 million Park Avenue South tower he’s developing with Toll Brothers. Crain’s reported that Zell’s construction manager on the site, recently penalized Lend Lease Construction, struck an agreement with the Building and Construction Trades Council that will reduce standard union labor costs by 20 percent. [more]
From left: Area Property Partners founder William Mack and Equity Investments Chairman Sam Zell
Real estate investment trusts are better off focusing on a single expertise than they are growing to all-encompassing behemoths. That was the consensus among a whole host of industry experts speaking today at the annual New York University Schack Institute of Real Estate REIT Symposium held at the Pierre hotel. [more]
From left: Stephen Schwarzman, Richard LeFrak, Sam Zell, Leonard Stern, Stephen Ross
Blackstone President Stephen Schwarzman, Richard LeFrak, Equity International Chairman Sam Zell and Related Companies Chairman Stephen Ross were just some of the big players in New York City real estate to make Forbes’ list of the world’s 1,226 billionaires released yesterday.
But none can match the wealth of the man who has the final say on whether many of their ambitious city projects ultimately get built: Mayor Michael Bloomberg. [more]
Equity Residential Chairman Sam Zell
Equity Residential increased its bid for the final 26.5 percent stake in Archstrone to $1.5 billion, triggering a guaranteed breakup fee if Lehman Brothers matches the bid, Bloomberg News reported.
Bank of America and Barclays have looked to unload their combined 53 percent stake in the Archstone portfolio, and that has resulted in a contentious battle for the stake between Lehman and Sam Zell’s Equity. Lehman already possessed a 47 percent stake in the portfolio and recently purchased an additional 26.5 percent stake for more than $1.3 billion. [more]
Sam Zell, Chairman of Equity Residential
Equity Residential’s purchase of a stake in apartment builder Archstone was blocked by the estate of Lehman Brothers Holdings, as Lehman exercised the option to match the bid, the Wall Street Journal reported.
Equity, run by Sam Zell, offered $1.33 billion for 26.5 percent of Archstone, a major competitor of Equity’s. Lehman’s purchase is half of the position in Archstone owned by Bank of America and Barclays and brings its total stake in Archstone to 73.5 percent. [more]
Ten23Equity Residential is requiring renters to put down a $1,000 non-refundable deposit to reserve an apartment in its new Ten23 rental building near the High Line, the New York Times reported. That’s on top of the astronomical rents at the 111-unit building, at 500 West 23rd Street near 10th Avenue, where Equity is charging $3,205 for a studio. “This is the most expensive deposit that I’m aware of,” said Citi Habitats President Gary Malin. “Typically, it’s more like $500.” [more]
Sam Zell’s Equity Residential has purchased 175 Kent Avenue, in Williamsburg, Brooklyn, for $76 million, Crain’s reported. The condominium-turned-rental was developed by the Chetrit Group, which bought the property for $56 million in 2007. It was not clear why it chose to sell the project, which leased up after only six months. It may have been less profitable than the developer expected after it converted to rental, Crain’s speculated. Aptsandlofts.com is the exclusive marketing agent for the building, at North 4th Street. Renting commenced in March 2011, with studios for $2,343 a month, one-bedrooms starting at $2,756 and two-bedrooms at $3,413. [more]
Lehman Brothers Holdings matched Equity Residential’s $1.33 billion bid for a 26.5 percent stake in Archstone, and then sued partners Bank of America and Barclays for breaching Lehman’s right of first refusal for the stake in a sale, Bloomberg News reported.
Archstone is a real estate investment trust with stakes in 60,000 U.S. apartment units and 14,000 units in Germany, that Lehman purchased in October 2007 with Tishman Speyer for $22 billion. Lehmar eventually filed for the biggest bankruptcy in U.S. history and refinanced the portfolio and brought in equity partners Barclays and BofA, which combined for a 53 percent stake. [more]
In the most expensive development site deal of the year so far, home builder Toll Brothers and real estate investment trust Equity Residential partnered in reportedly paying $134 million for a large development site at 400 Park Avenue South.
The joint venture plans to build a 40-story condominium and rental apartment tower at the Park Avenue South and 28th Street site, which has 400,000 square feet of development rights, the companies said in a statement.
Sam Zell’s Equity Residential will own and operate the lower 22 floors with 265 rental apartments and retail, while Toll Brothers will build and sell about 100 condo units on the upper floors, the Wall Street Journal reported. [more]
Ten23, the first ground-up Manhattan development by Sam Zell’s Equity Residential, opened for leasing today. The rental building, located at 500 West 23rd Street near 10th Avenue in Chelsea, is a 111-unit mix of studios and one-, two- and three-bedroom apartments with rents ranging from $3,205 to $11,577 per month, according to a statement issued by Equity, which markets the building in house. However, the building’s website shows a 414-square-foot studio asking $2,965 per month as the least expensive unit. It opens for occupancy in January. – Adam Fusfeld [more]
