Having just leased the first 10 apartments at 25 Broad Street last month, Lehman Brothers Holdings lives on and is looking to make some profit from prime New York properties, and perhaps pay off some creditors, according to the New York Observer.
Set to Update A Bankruptcy Court on plans next week, Lehman has apparently shifted its tactics. The firm is moving to sell its share of key Manhattan assets such as the old International Toy Center at 200 Fifth Avenue and 1107 Broadway, and is quietly considering a new development at 235 West Broadway in Soho, the Observer reported.
The Toy Center, marketed by Eastdil Secured’s Doug Harmon and Adam Spies, is valued at $750 million and last sold for $480 million in 2007. The eventual price for Lehman’s 95 percent stake could set a “new benchmark for midtown south,” according to Real Capital Analytics’ Dan Fasulo.
Lehman hopes to liquidate its New York assets by September 2013, the Observer said.
Lehman has held off on selling assets en masse so far. While many financial firms held fire sales, it mostly waited for signs of recovery in the market. “Looking back on it, it was a smart thing to do because of pricing,” said Bill Elder of RXR Realty. [NYO]