Boymelgreen RKO Keith's note to sell for less than $20M
October 26, 2009 12:30PM By Adam Pincus
A rendering of RKO Keith's
A Midtown-based real estate investment firm is in negotiations to take
control of the troubled RKO Keith's Flushing Theater from Boymelgreen
Developers by the end of the year.
Venator Capital has agreed to purchase a $20 million note secured by
the Flushing, Queens, property located at 135-27 Northern Boulevard from
Doral Bank, said Sam Suzuki, a principal with Venator, ultimately giving the company full control of the theater.
Investors affiliated with Venator are active in the Bronx as well, where they are in contract to buy 16 mostly rent-regulated apartment buildings owned by Ocelot Properties, after buying six earlier this year.
The RKO Keith's note purchase would be followed by a so-called friendly foreclosure in which Boymelgreen would sign over the deed to the new owner without a protracted court proceeding, Suzuki said.
"We have an agreement for the note and we just have to get certain due diligence done by the end of the year," Suzuki said. The agreement was signed last week.
The note would be sold at a discount, but Suzuki would not disclose the price.
A senior vice president at Doral Bank, Kenneth DiGregorio, confirmed that negotiations were underway for the security, but he, too, would not disclose the price. An executive with Boymelgreen did not immediately respond to a request for comment.
The Bronx and Queens agreements are examples of long-awaited distressed sales being negotiated in New York City. Such sales have only trickled into the market despite sharp drops in property values.
Boymelgreen has been trying to sell RKO Keith's since a dispute with local Community Board 7 in 2007 prevented it from altering approved plans. In the spring of 2008, commercial sales firm Massey Knakal Realty Services listed the parcel for $31.5 million. After not selling, Boymelgreen gave the exclusive to brokerage RE/MAX, which had it listed for $24 million.
Boymelgreen bought the property in 2002 from notorious developer Tommy Huang for $15 million, but by 2008 had borrowed $20 million against the property.
Plans approved by the city allow for the development of 200 residential units, 10,000 square feet of retail and 12,500 square feet of community facility space as well as 229 parking spots, city records show.
Venator plans to partner with a developer to build the project, but would not discuss what would be built or specific numbers of units or square feet.
"I can't say anything until I get possession," Suzuki said.
In the Bronx, an entity called BXP 2, an affiliate of Hunter Property Management, a company owned by Venator, is in contract to buy 16 buildings that were part of the 24-building portfolio owned by Ocelot.
That sale is pending approval by Fannie Mae, the mortgage giant that holds mortgages on the 16 properties, Suzuki said.
A Hunter Property entity called BXP 1 paid $13.54 million for six Ocelot properties in May, including 1268 Stratford Avenue, city records show.
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
Another poorly written article! Why no mention of the big fight going on to protect this theater from destruction? What does the new buyer plan to do with the theater? Why was the question not even asked?
Comment #1 Posted By: Anonymous 10/26/09
Anonymous
seriously who cares about the theater?
Comment #2 Posted By: Anonymous 10/26/09
Anonymous
who cares about Boymelgreen?
Comment #3 Posted By: Anonymous 10/26/09
Anonymous
#2 is seriously an idiot!
Comment #4 Posted By: Anonymous 10/26/09
Anonymous
The ocelot buildings are worst than bagdad!Bronx's very best, whoever gets it for free will regret it!
Comment #5 Posted By: Anonymous 10/26/09
Anonymous
I would love to see it developed. I dont know how long it's been sitting there for nothing.
Comment #6 Posted By: Anonymous 10/26/09
Anonymous
there is a serious group, FRIENDS OF THE RKO KEITH's, who for 7+months have successfully gained the attention of a renewed effort to save and refurbish this theater- please do not write "who cares about this theater?" We do.
Comment #7 Posted By: Anonymous 10/27/09
Tarzan's brother
I will say it again, as I did on the petition to save the Keith's (a building whose contribution to culture and the lives of the people of the greater Flushing area, just as one of the great vaudeville houses, is more than anyone who'd be reading this, so I don' want to hear it) : I will stand in front of any equipment or machinery intended to demolish this building, armed, as it would seem necessary.
Comment #8 Posted By: Tarzan's brother 10/27/09
Anonymous
Just because the area is mostly populated by Chinese people, who themselvse saved the area from becoming a dead retail area, it doesn't mean that the area has turned communist! So if anyone wants to save the Keith's Theater, they should purchase it! otherwise get out of the way..
Comment #9 Posted By: Anonymous 10/30/09
Anonymous
Shaya Boymelgreen here: I offer 25 Million BoymelShekels for the theatre!
Comment #10 Posted By: Anonymous 11/10/09
Anonymous
Sam Suzuki who is part of Venatur Capital and Hunter Property Management is a man whose moral and ethical practices are abominable. He is the main culprit for making properties become distressed. He cares about money and not people. In the Bronx there are low-income/ no income families and he wants to move as many people out to deregulate rents. Hunter Property was already involved in the Ocelot Portfolio as managers and when tenants complained too much they were the ones to run away without making any repairs. It doesn't matter how many names he changes the company eg. Hunter, Vintage, Venatur- He is a crook and we don't want him here in the Bronx. No property including this theater should have such a horrible owner. The theater will go down under his care. Someone, anyone stop this man. He is no hero- He is the biggest lowdown villain to poor communities.
Comment #11 Posted By: Anonymous 11/13/09