Peebles, Elad partner on $400M Tribeca restoration

New York /
Dec.December 11, 2013 05:12 PM

The Peebles Corporation has enlisted Elad Group as a partner in acquiring a landmarked 400,000-square-foot building at 346 Broadway — also known as 108 Leonard Street — in Tribeca for $160 million. The developers closed on the deal today, Peebles Corporation said.

The city selected Miami developer Don Peebles’ company in March to reposition the 13-story building, which currently houses the New York City Criminal Court.

After a yearlong application and proposal process, the company will now proceed with plans to transform it into condominiums and a hotel. This is Peebles’ first acquisition in the city.

Peebles told The Real Deal he teamed up with Elad for its expertise with restoring landmarked buildings such as 250 West Street in Tribeca And The Plaza Hotel on the Upper West Side. The city approved the partnership soon after.

The pair is investing $100 million, roughly one quarter of the $400 million that will be spent on the restoration, a source told The Real Deal. Goldman Sachs also provided an acquisition and pre-development loan of an undisclosed amount, the source said. The remainder of funds is from other debt.

After the city evacuates the building in May, the developers aim to start interior demolition. Sales would then launch late next year, with a 2016 opening date. The architect has yet to be announced.

The hotel component will include 50 to 100 Rooms Over Two Floors On The Eastern Broadway side of the building. Peebles said he is in talks with two five-star hotel brands, but declined to disclose which ones.

Plans call for 100 to 140 condo units, the prices of which are yet to be determined. Peebles said in May that prices would start at about $1,500 to $1,600 per square foot, but said now they would be much higher. He dubbed this project the “prewar alternative to 56 Leonard,” referring to the blockbuster new construction condos down the street.

“The market has really moved and created tremendous strength,” Peebles said.

Udi Erez, CEO of Elad, could not be immediately reached for comment. The Israeli newspaper Haaretz first reported Elad’s involvement. [Haaretz]Mark Maurer


Related Articles

arrow_forward_ios
14 Vesey Street, 1123 Avenue J in Brooklyn, and Jeff Sutton of Wharton Properties (Americasroof/Wikipedia, Google Maps, Wharton)
Jeff Sutton unloads Midwood commercial building
Jeff Sutton unloads Midwood commercial building
Don and Katrina Peebles with their recently purchased Bath Club unit. (Getty, ONE Sotheby’s International Realty)
Developer Don Peebles downsizes in South Florida
Developer Don Peebles downsizes in South Florida
Rudin Management’s Michael Rudin and Industrious’ Justin Stewart with 32 Sixth Avenue in Tribeca (Rudin, Industrious, Google Maps)
Rudin teams up with Industrious for flex-office play
Rudin teams up with Industrious for flex-office play
38 Warren Street and CVS CEO Karen S. Lynch (Google Maps, CVS)
CVS signs lease in Tribeca’s Keystone Building
CVS signs lease in Tribeca’s Keystone Building
Daniel Hoeg and Don Peebles (Daniel Hoeg, Gettty, iStock)
Peebles accuses former associate of “anonymous and malicious” smear campaign
Peebles accuses former associate of “anonymous and malicious” smear campaign
Brennan Zahler goes back to his Corcoran roots. (iStock, Warburg, Corcoran)
Warburg’s Brennan Zahler jumps back to Corcoran
Warburg’s Brennan Zahler jumps back to Corcoran
Don Peebles and the Bath Club (Getty, Peebles Corp.)
Judge slaps Don Peebles’ Bath Club Entertainment with $1M in sanctions
Judge slaps Don Peebles’ Bath Club Entertainment with $1M in sanctions
Charlie West at 505 West 43rd Street, Elad's Yitzhak Tshuva and Tishman Realty's Daniel Tishman (Photos via StreetEasy, Charlie West, Getty, Elad)
Tishman Realty strikes bulk condo deal with Elad Group
Tishman Realty strikes bulk condo deal with Elad Group
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...