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

L&L Holding has submitted a stalking-horse bid for 1107 Broadway, the vacant, 16-story former Toy Building that’s slated to be sold in a public foreclosure auction later this month. According to the Post, L&L, which owns the 1107 Broadway’s more financially stable sister building, 200 Fifth Avenue, across the street, bid $161.5 million for the property, where Lehman currently holds $343 million in debt. Another buyer would have to offer above $164.5 million in order to win the building, which is owned by a partnership led by Yitzhak Tessler that also includes investor Joseph Chetrit. [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]

The stalled condo conversion project at 16-story 1107 Broadway is still vacant, save for a bank branch on the ground floor. The former northern Toy Building, purchased for $235 million by developer Yitzchak Tessler in 2007, is now considered a “troubled asset” by real estate research firm Real Capital Analytics, and industry insiders told the Post that the project is unlikely to emerge from its current state any time soon. It’s possible, they said, that Joseph Chetrit, who owned the building before Tessler, may have retained some sway after the deal, and the building’s $343 million in debt to Lehman Brothers Holdings is up in the air. “The debt was carved up in a confusing way where no one knows what will happen, and there’s a lot of finger-pointing going on,” one source said. [Post]