Silverstein closes on $138M sale of Beekman Tower

Silverstein sells after series of litigation and delays

TRD New York /
Jul.July 06, 2015 02:40 PM

UPDATED July 7, 12:45 p.m.: The $138 million sale of the Beekman Tower — a vacant, 170-unit Art Deco tower in Midtown East — has officially closed.

An unnamed foreign investor, along with Brooklyn developer Chaim Miller, is the new owner of the tower at 3 Mitchell Place. Silverstein Properties is the seller.

Multiple industry sources, who asked not to be named, confirmed the sale.

Brooklyn-based Bridge Street Development Corporation will manage the landmarked property, which will be used as an extended-stay facility. Derrick LaRosa, the director of real estate at BridgeStreet Global Hospitality, said the Beekman will be the largest asset globally to be managed by the company.

LaRosa continued that he hopes to start moving people in “as early as this week.” The property won’t be a hotel and all residents have to live there for a minimum of 30 days.

Silverstein sued Miller in April, claiming that the investor had breached the initial terms of the sale after not paying an additional $8 million security deposit.

Silverstein representatives declined to comment.

In May, the parties settled the dispute. Miller agreed to pay the additional $8 million and Silverstein agreed to drop the suit if the sale went through within the 45-day deadline. Under those terms, if the sale hadn’t gone through, Silverstein would’ve kept the deposit and would have been allowed to sell the property to a new party.

Eastdil Secured’s Doug Harmon, Adam Spies and Adam Doneger represented Silverstein. Ben Reifer, an independent broker, represented Miller in the deal.

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