From left: Steve Witkoff, Howard Lorber and 1107 Broadway

Lehman Brothers has reached a deal to sell the in-default debt on 1107 Broadway to the Witkoff Group and Howard Lorber’s Vector Group for about $190 million, the New York Post reported.
The deal, determined at auction yesterday, comes just days after Lehman sold its majority ownership stake in 200 Fifth Avenue, located between 23rd and 24th streets, to JPMorgan Chase. The two buildings, connected by a footbridge, make up what used to be the International Toy Center.
“We think it is one of the great opportunities we’ve seen,” Steve Witkoff, CEO of the Witkoff Group, told the Wall Street Journal.

Witkoff, who has 90 days to finalize the deal at 1107 Broadway, between 24th and 25th streets, said he plans to turn the building into high-end condominiums. [more]

The former Toy Building at 1107 Broadway and developer Yitzchak Tessler (building photo source: PropertyShark)

Developer Yitzchak Tessler is facing multiple challenges in his effort
to hold on to the condominium conversion project at the former Toy
Building at 1107 Broadway overlooking Madison Square Park. The
bankrupt lender Lehman Brothers Holdings sued Tessler and his company
1107 Broadway LLC yesterday to foreclose on a $136.8 million senior
loan. [more]