Africa Israel to sell 88 Leonard in $222M deal

June 23, 2011 08:37AM

Africa Israel has agreed to sell Tribeca’s 88 Leonard Street, built in 2007, to an anonymous buyer, in a deal that values the 352-unit tower at $222 million, Bloomberg News reported. The building went into contract this week, U.S. CEO Tamir Kazaz said.

“It’s a good deal for us and a good deal for the buyer,” he said. “The buyers are sophisticated real estate investors with tremendous experience in management of rental apartments, which I trust will continue to increase the value of this asset.”

Africa Israel will sell a 49 percent stake in the property for $37 million within 60 days and then its remaining share for $17 million after 6 months. The buyer will also take on a $24 million mezzanine loan on the building and assume a $132 million senior mortgage.

Africa Israel has been restructuring and refinancing more than $1.5 billion in debt from its pre-crisis acquisitions. This sale lessens its burden by $156 million, according to the filing. “After this transaction, our debt will be $250 million on our books,” Kazaz said.

As previously reported in February, Africa Israel had been hoping to get $200 million for the property which contains 11,365 square feet of retail space and sits above a 249-space parking garage. It was marketed by the Cushman & Wakefield capital markets group of Helen Hwang, Nat Rockett, Karen Wiedenmann and Steven Kohn. [Bloomberg News]