CWCapital to take title to Riverton Houses [UPDATE]
March 11, 2010 01:50PM By Adam Pincus
Riverton Houses, Steven Sinatra (top) of Greenberg Traurig, and Howard Comet (bottom) of Weil, Gotshal & Manges
Special servicer CWCapital Asset Management won the bidding this morning to take title to the Riverton Houses in Harlem at a price of $125 million, following a short bidding war with an attorney representing a company controlled by real estate investor David Bistricer, called Morgan Capital.
About 75 people, including brokers, potential buyers and residents of the 12 13-story apartment buildings, attended the brief auction in the rotunda of the State Supreme Court building at 60 Centre Street.
The property has a loan with a judgment valued at $240.6 million that is held in a commercial mortgaged-backed security. CWCapital is the special servicer for the loan.
The value of the complex rose and fell steeply in recent years. Developer Laurence Gluck bought the 1,223-unit complex between 135th Street and 139th Street and Fifth Avenue and the Harlem River for $131 million in August 2005. Less than two years later, in January 2007, the apartment buildings were priced at $340 million. But in September 2009, real estate finance data firm Trepp reported the property was worth just $108 million.
Attorney Steven Sinatra, a shareholder at law firm Greenberg Traurig, made the first bid representing Bistricer's Morgan Capital, for $50 million. Bistricer tried and after fierce community and political opposition failed to buy Brooklyn's Starrett City in 2007 for $1.3 billion. He was quickly matched by Howard Comet, a partner at Weil, Gotshal & Manges, representing CWCapital, for $55 million.
The bidding continued for several minutes in increments of $1 million to $9 million. After Comet made a bid for $120 million, Sinatra countered with $120.1 million after conferring with several individuals.
Comet came back with $125 million, and Sinatra said, "We're done."
Bistricer, managing member of Morgan Capital, said in an interview today that he thought $125 million was "a fair price."
He would not explain why he would not bid higher, but noted Gluck bought it for less and poured millions into refurbishing it.
"It is too complicated to get into that kind of thing. It was a complicated transaction. It was a fair price," he said. "[Gluck] did a very nice job improving the property."
Original publication date 12:15 p.m., March 11, 2010
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Comments
Anonymous
condo the thing
Comment #1 Posted By: Anonymous 03/11/10
Anonymous
Too ugly...
Comment #2 Posted By: Anonymous 03/11/10
Anonymous
1223 Harlem condos sold at low prices will have a negative impact on prices throughout the city.
Comment #3 Posted By: Anonymous 03/11/10
Anonymous
#3 isnt that so called affordable housing?? isnt that what the the pandering politicians want.........?
Comment #4 Posted By: Anonymous 03/11/10
Anonymous
Now who's going to run the property?
Comment #5 Posted By: Anonymous 03/11/10
Anonymous
5x rent roll sounds about right.
Comment #6 Posted By: Anonymous 03/11/10
Anonymous
I wonder how these new guys are going to approach turning over enough apts to stay afloat!
Comment #7 Posted By: Anonymous 03/11/10
Anonymous
if you profit you are the devil - just ask Dan Garodnick and Charlie Rangel
Comment #8 Posted By: Anonymous 03/11/10
Anonymous
Except Rangel profited from having THREE rent stabilized apartments...claiming NOT to have known the law. Damn liar...he abused his office and should be run out of town.
Comment #9 Posted By: Anonymous 03/11/10
Anonymous
Rose Associates will now manage the property.
Comment #10 Posted By: Anonymous 03/12/10
Anonymous
and dont forget, Gluck sucks
Comment #11 Posted By: Anonymous 03/12/10
Anonymous
Gluck is a crook. Put him in jail.
Comment #12 Posted By: Anonymous 03/12/10
Anonymous
number 9 Rangel actually has 4 RS units. 2 are combined. Can you believe the sense of entitlement?
Comment #13 Posted By: Anonymous 03/15/10
Anonymous
Comment #3 Posted By: Anonymous 03/11/10 Comment #1 Posted By: Anonymous 03/11/10 What do you mean 1223 Harlem condos?? This is a rent-stablized building. They can't make this into a condo unless the tenants (more than 60%) participate and agree!
Comment #14 Posted By: Anonymous 03/18/10
Anonymous
Comment #5 Posted By: Anonymous 03/11/10 CW Capital has a contract with Rose Associates! The same people who is running Stuy Town and Peter Cooper! I believe!
Comment #15 Posted By: Anonymous 03/18/10
Anonymous
Bistricer? Is this the same Bistricer, NY State Attorney General Andrew Cuomo has banned Bistricer and his family for life from any co-op dealings in the state, citing Bistricer's "financial improprieties" and "sordid legal history"
Comment #16 Posted By: Anonymous 04/27/10