RFR can’t unload 49 percent Seagram stake

September 15, 2011 08:48AM

alternate
text
From top: Aby Rosen, Michael Fuchs and the Seagram Building
Aby Rosen and Michael Fuchs, partners at RFR Holdings, have yet to find a buyer for their  49 percent stake in the Seagram Building due to the high asking price, Crain’s reported. The pair has looked to sell its stake since May for $700 million, which amounts to roughly $1,800 per square foot. The record price for an office building was set at 450 Park Avenue in 2007, at $1,585 per square foot.

Though Seagram, located at 375 Park Avenue near 53rd Street, is coveted for its location, its architectural design and its bevvy of elite investment firms paying high rents, Crain’s cites industry sources who say the price would need to be lowered to around $1,200 to $1,500 per square foot, in order for the stake to sell.

RFR wants to sell the stake so it can by out another partner, Peter Brant, who owns a 35 percent stake in the building valued at about $100 to $150 million taking debt into account. Brant became disenchanted with the duo during a divorce trial with his wife, Crain’s said, to whom he is ultimately still married.

RFR hired Citigroup’s high net worth unit to market the property, but could consider choosing a different brokerage or offering preferred equity to facilitate a sale. [Crain’s]