Rockrose backs off 575 Lexington acquisition

March 05, 2012 09:30AM

Rockrose Development has cut off talks to buy 575 Lexington Avenue from Silverstein Properties and the California State Teachers’ Retirement System, Crain’s reported, because the price was too high.

The firm was reported to be near a deal to buy the 35-story building between 51st and 52nd streets for $370 million in January, but Rockrose CEO Henry Elghanayan said the negotiations stalled because of the price Silverstein President Larry Silverstein and Calstrs were demanding.

The ownership acquired the building for $416 million at the height of the market in 2006 and were in danger of being foreclosed upon last year by debt-holder LNR Properties. However, Silverstein and Calstrs managed to pay down some of the debt and rework the terms of the loan to maintain control over the 585,000-square-foot tower.

Elghanayan said he still has interest in the building “at the right price,” but Crain’s said he would not specify what that price was. [Crain’s]