Toll Brothers pays $35M for bankrupt Gramercy site

New York /
Jun.June 22, 2011 05:29 PM
From left: 276-280 Third Avenue,Toll Brothers’ Bob Toll and developers Norman Kaish and Leonard Taub

[Updated 7:00 p.m. with marketing and judgment of loan] Residential developer Toll Brothers won a foreclosure auction held today with a $35.5 million bid for the property at 276-280 Third Avenue at the corner of 22nd Street in the Gramercy Park neighborhood, along with air rights from four other properties.

Toll Brothers plans to build a 21-story apartment building with approximately 80 units, which would include retail space, company spokesperson Christine Sciarrotta said. The developer has not yet decided if the units will be rentals or condominiums.

Developers Norman Kaish and Leonard Taub, under the name Gramercy Park Land, began putting the assemblage together in 2006, and borrowed $30.5 million from UBS Real Estate Investments, city property records show. But the company defaulted on the loan, and UBS pursued a foreclosure. Gramercy Park Land filed for bankruptcy in March 2011.

The total site can support a 105,000-square-foot project, according to an article in March 2011 by Real Estate Alert. A team led by Jonathan Caplan, an executive managing director at commercial brokerage Jones Lang LaSalle, represented UBS in its efforts to market the loan. The loan had a judgment totaling about $46 million, court records showed.

The auction bid comes to a price of $338 per buildable foot.
The court-ordered sale was held in the New York State Supreme Courthouse in Lower Manhattan. There were approximately a half-dozen bidders.

Paolo Zampolli, senior vice president at Prudential Douglas Elliman and a potential buyer of the site, sent a lawyer to the auction to represent him in the bidding, but he was only prepared to bid up to $25 million, he said.

“Gramercy is one of the best places in New York City,” he said. “But the bidding went beyond my range.”


Related Articles

arrow_forward_ios
Toll Brothers CEO Douglas C. Yearley Jr. (Credit: iStock)

Pandemic takes a Toll: Builder’s profits drop 42%

Pandemic takes a Toll: Builder’s profits drop 42%
Doug Yearley of Toll Brothers and 2686 Broadway (Credit: Google Maps and Toll Brothers)

Who’s still filing permit applications? Toll Brothers, for one

Who’s still filing permit applications? Toll Brothers, for one
Toll Brothers CEO Doug Yearley and 77 Charlton (Credit: iStock)

Toll’s profits plunge 20% amid housing slowdown

Toll’s profits plunge 20% amid housing slowdown
Douglas Yearley of Toll Brothers

Homebuilder Toll Brothers looks to higher-earning millennials amid down Q3 results

Homebuilder Toll Brothers looks to higher-earning millennials amid down Q3 results
Prime Minister Mette Fredriksen and President Donald Trump (Credit: Getty Images and iStock)

Well, that escalated fast: A timeline of Trump’s Greenland adventure

Well, that escalated fast: A timeline of Trump’s Greenland adventure
2686-2690 Broadway, Hank Fried of Branic International Realty (left), and Doug Yearley of Toll Brothers (Credit: Google Maps, Getty Images, and Toll Brothers)

Toll Brothers buys controversial Marrakech Hotel site for $44M

Toll Brothers buys controversial Marrakech Hotel site for $44M
Toll Brothers' David Von Spreckelsen and 1110 Park Avenue penthouse

Toll sells penthouse at 1110 Park for $17.25M — a 50% discount

Toll sells penthouse at 1110 Park for $17.25M — a 50% discount
Toll Brother's David Von Spreckelsen

Watch: A sneak peak of Toll’s 121 East 22nd

Watch: A sneak peak of Toll’s 121 East 22nd
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...