The Real Deal New York

Witkoff Group teams up with Morgan Stanley for Toy Center condo conversion

Steve Witkoff and 1107 Broadway

The Witkoff Group, owner of one of the International Toy Center buildings located at 1107 Broadway, is joining forces with a Morgan Stanley real estate fund for a $290 million condominium conversion of the property featuring 145 units, the Wall Street Journal reported. The collaborators are still searching for a financing partner, but are expected to close the deal in the next month.

Witkoff acquired the 16-story, 350,000-square-foot property for $190 million in a one-day auction in June by seller Lehman Brothers. A number of high-profile bidders attended the event, including CIM and William Macklowe, SL Green Realty, and L&L Holdings.

Witkoff and Morgan Stanley anticipate spending $100 million to renovate the building, the Journal said.

This is not the first time developers have planned condos at the site. Lehman previously lent more than $300 million to Tessler Developments for a conversion project, but Tessler defaulted on its debt before construction began. [WSJ]

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