Schron broker says Empire State IPO misled investors: VIDEO

Meister compared missteps from the Malkin family to president's handling of "Obamacare"

TRD New York /
Nov.November 21, 2013 10:10 AM

Jason Meister, a broker and vice president at commercial brokerage Avison Young, who represented both Joseph Sitt and Rubin Schron in their unsuccessful bids for the Empire State Building, compared the building’s initial public offering to Obamacare on television yesterday.

Meister claimed that the original investors in the iconic tower were misled into believing they would get greater returns if the building was taken public, similar to the false promises made by President Barack Obama about his healthcare plan, he told Fox News.

The Empire State Building was officially transferred to the nascent Empire State Realty Trust, a publicly-traded real estate investment trust, for $1.89 billion — substantially less than the $2 billion-and-up offered by Sitt and Schron — last month, as The Real Deal reported.

“[Investors] were told the exchange value in the REIT was going to be roughly $323,000 a unit,” Meister told Fox News in the video above. “It ends up that at $13 a share, these investors are getting roughly $223,000 [each]. That’s $100,000 less than what they were told they were going to get.”

Meister continued: “President Obama is guaranteeing that the American people are going to be able to keep their health insurance policies. Under Obamacare … what happens? Millions of Americans get cancellation policies. People don’t want to be misled.” [Fox News]  – Hiten Samtani


Related Articles

arrow_forward_ios
Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Trump’s tax returns, Amazon gets into proptech: Daily digest

Trump’s tax returns, Amazon gets into proptech: Daily digest

Joe Sitt and 1725 Shore Parkway in Bensonhurst (Credit: Google Maps)

Thor sells Bensonhurst big-box store for $75M

Empire State Realty Trust CEO Anthony Malkin (Credit: Getty Images)

Ex-Empire State Realty Trust exec claims she was fired after complaining about age discrimination

Thor Equities chairman Joe Sitt and 1006 Madison Avenue

Thor in danger of losing Madison Ave property

545 Madison Avenue and Thor Equities' Joe Sitt

Thor Equities in hot water at 545 Madison

Empire State Realty Trust's David A. Karp

Empire State Realty Trust’s CFO David Karp is stepping down

From left: Joseph Sitt, Yaron Jacobi and Uzi Ben Abraham; 117 East 15th Street, 1122 Madison Avenue and 96-33 Queens Boulevard (Credit: Google Maps, Getty Images)

Here’s what the $10M-$30M NYC investment sales market looked like last week

arrow_forward_ios