The Real Deal New York

Chaim Miller inks $138M contract for Beekman Tower

Silverstein, Fisher Brothers, Capstone bought hotel in 2012 for $82M
By Adam Pincus | January 02, 2015 09:30AM

A group affiliated with the Brooklyn investor Chaim Miller has signed a contract to buy the landmarked Beekman Tower for $137.5 million from a joint venture of Silverstein Properties, Fisher Brothers and Capstone Equities, several sources familiar with the transaction told The Real Deal.

Miller and his partners expect to close on the acquisition of 3 Mitchell Place, now known as Silver Suites Residences at Beekman Tower, in the first quarter of 2015, sources close to the deal said.

The building, which will be delivered vacant, has 170 apartments and 6,000 square feet of retail. The buyers expect to rent the units as a traditional apartment building, a source close to the buyers, said.

The sale represents a major coup for Miller, who led a group that bought the vacant rental building 45 John Street in Lower Manhattan as well as properties in Brooklyn and Manhattan.

The 26-story Art Deco skyscraper located between 49th and 50th streets, a block north of the United Nations, was completed in 1928 as a residence and clubhouse for women belonging to national college sororities. At the time it was known as the Panhellenic Tower. The building was designated a city landmark in 1998.

Eastdil Secured’s Doug Harmon, Adam Spies and Adam Doneger represented the sellers while the independent agent Ben Reifer represented the buyers, sources said. Meridian Capital Group is representing Miller and his partners to obtain financing for the acquisition.

None of the parties returned calls seeking comment.

Silverstein, founded by chairman Larry Silverstein; Fisher, whose leadership includes Partner Winston Fisher, who directs acquisitions and dispositions; and Joshua Zamir and Daniel Ghadamian’s Capstone acquired the building in late 2012 for $82.15 million, city records show, and converted it to extended stay residences, with studios, one-, two- and three-bedroom units, according the Silver Suites Residences website.