Listing broker Dolly Lenz and 870 Park Avenue

It’s been a tumultuous decade for the 13-room townhouse at 870 Park Avenue. Originally listed for $23 million in 2004, it’s plowed through a roster of the city’s most elite real estate brokers, endured the market’s boom and bust, and has a lengthy history of price hikes and cuts to match. In December, still unsold, it found itself at the center of a divorce settlement and was transferred for $10 million to Winick Realty executive Lori Shabtai after she split from former owner Benny Shabtai, the Raymond Weil watch mogul.

But it looks like the 12,000-square-foot mansion has finally found someone who actually wants it. The four-story residence, whose façade was designed by 15 Central Park West architect Robert A.M. Stern and which was most recently priced at $24.5 million by Prudential Douglas Elliman vice chairman Dolly Lenz, entered into contract this past Friday. [more]

TF Cornerstone has arranged a 10-year, 800-square-foot lease with Crank
Cycling Studio at the View condominium at 4630 Center Boulevard in Long
Island City. According to TF Cornerstone, the studio, expected to launch
in the spring, will be on the ground floor of the waterfront
residential building and will features 26 Schwinn spin cycles and L.E.D.
lighting. It will be open seven days a week. The landlord was
represented by Winick Realty’s Steven Baker and Josh Singer. Modern
Spaces’ Ted Kokkoris represented the tenant. (note: correction appended) TRD
[more]

Benjamin Fox, former president of Winick Realty, has moved to Massey Knakal Realty Services, where he is heading the firm’s retail leasing services group and is already working on a dozen projects that were referred to him by investment sales brokers, he told the Observer. “I’ve always believed that there was a synergy between retail store leasing and investment sales, in that in so much of investment sales or the sale of property, retail is a major component,” Winick said, explaining why he joined Massey. “So our ability to analyze it more closely and carefully, and to let clients know that, in addition to selling property we can also lease their properties, is something that I’ve wanted to do for a very long time.” [more]

In his first video interview since being hired away last week from Winick Realty Group, veteran retail broker Benjamin Fox, executive vice president at Massey Knakal Realty Services, says discount giant Wal-Mart Stores might look for locations in Herald Square, near Bloomingdales in Midtown, or in Queens, among other places. Fox was speculating, and is not working with Wal-Mart in the search. In addition, Fox and Robert Knakal, chairman of Massey Knakal, told Insights from The Real Deal that property values often rise after a major chain retailer moves in.

But any opening is far off, Fox said, citing a high-level, internal Wal-Mart memo he had seen. “Everyone is getting way ahead of themselves,” he said. The Bentonville, Ark., global chain began a publicity push this month in New York City, as it tries to open its first store, after abandoning efforts twice before due to community opposition.
[more]

North Carolina-style BBQ restaurant Brother Jimmy’s has signed a 10-year lease for a 3,500-square-foot space at 521 West Street, at 95 Horatio Street, in the Meatpacking District, a new headquarters being used to house its corporate offices, commissary and catering facility. Founded in 1989, Brother Jimmy’s BBQ has seven locations in Manhattan, as well as its first signature burger restaurant, Jimmy’s Burger Shack. The lease was arranged by TF Cornerstone. Hal Shapiro of Winick Realty represented the tenant, while Steven Baker and Zach Fox of Winick Realty represented the landlord in the transaction. TRD
[more]

From left: Zelnik and Winick

The prosecution is scheduled to deliver its final statement this morning in the federal securities fraud case against two former Duane Reade executives who are accused of using bogus real estate deals throu [more]

From left: Cory Zelnik, former president at Winick Realty, and Jeff Winick, CEO of Winick Realty

The state agency that licenses real estate brokers opened an investigation this week into two of the city’s top retail brokers based on court testimony from one of them saying that about a decade ago they accepted a $ [more]

From left: the Hotel Chelsea on West 23rd Street and El Quijote, which now occupies one of its retail spaces

From the April issue: The landmark Hotel Chelsea may have finally found a tenant for two long-vacant and contiguous storefronts on the ground floor, totaling 3,529 square feet. “There’s not really a lot to say because we are [negotiating a lease],” said broker Lori Shabtai of Winick Realty, who declined to comment further on the pending deal beyond stating the asking price of $140 per foot annually. Part of the reason that the two spaces have been empty for so long has been the neighboring El Quijote restaurant’s own sweetheart lease. [more]

From left: Former Winick Realty President Cory Zelnik, former Duane Reade location at 4 Times Square, and current location at 225 Broadway (building photo source: PropertyShark)

In his second day on the witness stand, former Winick Realty Group President Cory Zelnik described additional allegedly fraudulent leasing transactions with drug store chain Duane Reade, this time at various city locations including one on lower Broadway damaged in the 9/11 terrorist attacks and another at the site of the Durst Organization’s One Bryant Park in Midtown.

Zelnik took the stand for his second day of testimony yesterday in a case brought by the United States Attorney in Manhattan against two former executives of drug store chain Duane Reade, who are accused of multiple crimes including securities fraud, which involved allegedly bogus real estate deals. Zelnik is not charged in the case, but is testifying under a grant of immunity from prosecution for his participation in the allegedly fraudulent deals. The defendants Anthony Cuti, former Duane Reade CEO, and William Tennant, a former CFO and senior vice president, who later served as an outside consultant for the drug store chain, are accused of conspiracy to commit securities fraud, filing false quarterly and annual reports, and other charges. They each face up to 20 years in prison. [more]

Former Winick Realty Group president Cory Zelnik says he paid for an expired lease at 1412 Broadway after moving Duane Reade to 1430 Broadway (building photos’ source: PropertyShark)

Former Winick Realty Group President Cory Zelnik testified yesterday as the first witness in the federal government’s securities fraud conspiracy trial of two former executives of the New York-based pharmacy Duane Reade. Zelnik told the jury that he and his former partner Jeff Winick, CEO of Winick Realty, engaged in a series of allegedly bogus transactions with Duane Reade that had no economic value, starting in about 2000. Neither Zelnik, Winick nor his company are named in the indictment, and Winick is not facing any charges. Zelnik agreed to testify on a grant of immunity from prosecution. Zelnik said he and Winick were partners in a real estate investment company called Danielle Equity Holding that in February 2001 paid Duane Reade a total of $806,000 for the right to control leases in eight properties valued at between $63,000 and $170,000 per lease although in fact the leases allegedly no longer had value. Zelnik and Winnick paid the money, he said, because they expected to get paid back and remain working with Duane Reade. [more]