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New York

Silverstein closes on $138M sale of Beekman Tower

Silverstein sells after series of litigation and delays

From left: The Beekman Tower at 3 Mitchell Place and Larry Silverstein and Marty Burger
From left: The Beekman Tower at 3 Mitchell Place and Larry Silverstein and Marty Burger

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.

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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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Larry SilversteinSilverstein Properties