Extell sells $52M stake in Hudson Square site leasehold

Jun.June 03, 2013 03:30 PM

Updated, 5:41 p.m., June 3: Extell Development has recapitalized its long-term leasehold at a Hudson Square development plot by selling a 90 percent stake in the site for $52 million to investment firm Angelo, Gordon & Co., city records filed today show.

The deal for 68-74 Charlton Street, also known as 61-63 Vandam Street, closed May 17. The date of the leasehold was extended until 2163, according to Dana Roffman, an executive with Angelo’s real estate group. Angelo had invested in a joint venture with Extell and intends to explore development opportunities at the site, Roffman said.

Brian Ezratty, a vice chairman at Eastern Consolidated who was marketing the site, said that given the rezoning, it was likely that Extell would look to build a high-end residential property at the site. Representatives from Extell did not immediately respond to requests for comment. .

Extell had been looking to unload its leasehold interest at the site since 2011. The developer previously intended to build a 35-story, 181,000-square-foot luxury hotel, but later scrapped those plans.

In 2006, Steve Tzolis – who owns restaurants Il Cantorini and Periyali – entered into a 30-year ground lease at the site through an entity listed as Vrahos LLC. In November 2012, a lawsuit alleging that Tzolis had committed fraud and misrepresentation at the site was dismissed by the New York State Court of Appeals.

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