Madison Capital buys bankrupt Loehmann’s leases

Investment firm pays $7.5 million: sources

New York /
Jan.January 06, 2014 03:23 PM

The Midtown-based investment company Madison Capital purchased scores of unexpired leases formerly held by the bankrupt department store Loehmann’s, including a large lease on the Upper West Side, court records show.

Madison, headed by Richard Wagman and Joseph Jacobson, acquired the leases as part of a two-day auction held in Manhattan on Jan. 3 and 4, according to papers filed today in U.S. Bankruptcy Court for the Southern District of New York.

Though the price was not disclosed, industry sources said the firm paid $7.5 million for the leases, including one with 37,157 square feet in the Ansonia at 2101 Broadway at 73rd Street. That lease was valued at $5 million of the total purchase price, insiders said, in part because it has four five-year extension options.

Madison Capital declined to comment. The sale is subject to court approval, with a hearing scheduled for tomorrow.

Madison Capital is an active retail investor. It paid $130 million last month for retail units from Westbrook Partners at 235 West 75th Street on the Upper West Side and at 301 West 53rd Street in Hell’s Kitchen. In addition, the firm is currently developing 19 East Houston Street, Between Broadway And Crosby Street in Soho, where it plans to construct a six-story office and retail building.

Loehmann’s had approximately 40 leases nationwide, including three in New York City. The most expensive annual rent payment in the city was the Ansonia lease, with an annual rent of $2.35 million. The other city leases were at 5740 Broadway in the Bronx, which had an annual rent of about $750,000 for 30,000 square feet, And 2807 East 21st Street in Sheepshead Bay, with 27,789 square feet with an annual rent of about $733,750. Loehmann’s had another lease at 101 Seventh Avenue, but Barneys has now snapped up that site.

Loehmann’s filed for Chapter 11 bankruptcy protection on Dec. 15.


Related Articles

arrow_forward_ios
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Dollar General to open 1k stores aimed at wealthier, more suburban shoppers
Bronx landlord could lose property after filing for wrong type of bankruptcy
Bronx landlord could lose property after filing for wrong type of bankruptcy
Bronx landlord could lose property after filing for wrong type of bankruptcy
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
5 East 59th Street (Google Maps, 5e59.com)
Singapore bank sues to foreclose on ex-Playboy Club building
Singapore bank sues to foreclose on ex-Playboy Club building
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
Steven E. Baker, Danielle Winick, Jeff Winick, Lee Block and Louis Eisinger (Winick Realty Group)
Majority stake in Winick Realty auctioned to insiders as IRS waves red flags
Majority stake in Winick Realty auctioned to insiders as IRS waves red flags
Developers are finding new lives for “zombie” malls
Developers are finding new lives for “zombie” malls
Developers are finding new lives for “zombie” malls
Vornado Realty Trust’s Steven Roth and Michael Franco (Getty, Vornado)
NYC retail has hit bottom: Roth
NYC retail has hit bottom: Roth
arrow_forward_ios

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

Loading...