Bryant park rehab facility trades for $32M

Daytop gets $5M more than agreed-upon contract price
By Guelda Voien | July 30, 2012 03:00PM

The bankrupt drug and alcohol rehabilitation facility Daytop Village has sold its Bryant Park headquarters, at 54 West 40th Street, for $32 million, according to records filed with the city Friday. That’s almost $5 million more than the agreed-upon price when the property went into contract.

Daytop, which filed for Chapter 11 bankruptcy protection in April of this year, according to a statement on its website, had reached an agreement to sell the 11-story asset to Eric Hadar’s Allied Partners, a New York City-based real estate investment and management firm, for $26.5 million, in 2010.

The non-profit owes $33 million to Signature Bank and Hudson Valley Bank, and is being pressured by its creditors to liquidate its real estate assets in order to pay down debt, a release from Daytop said.

But recent reports said Daytop’s creditors asked the facility to re-market the property, as investment sales pricing in Manhattan has surged. It seems Allied and Daytop reached an agreement, however, with the final sales price nearly 20 percent higher than the previously agreed-upon amount.

The sale of the 50,000-square-foot facility was contingent on Daytop, which is the second-largest rehab facility in the state of New York, securing a new home. Nearly 50 percent of the 1,600 patients that Daytop serves in the greater New York City region suffer from HIV or Hepatitis C, a release from the non-profit on its financial reorganization said. The Bryant Park headquarters housed about 35 men enrolled in a halfway house-type program and administrative offices for Daytop.

Daytop purchased the building from the Overseas Press Club in 1973, but the price paid was not available in city records.

A source told The Real Deal that Daytop has moved into a much smaller space, situated on two floors at 104 West 40th Street, an office property just west of Bryant Park. Neither Allied nor Daytop officials were immediately available for comment.