Related buying up its own supply at Carnegie Park

LLCs controlled by firm execs closed on five units at the UES condo conversion
By James Kleimann and Miriam Hall | January 13, 2017 04:30PM

From left: 200 East 94th Street, Bruce Beal and Jeff Blau

That’ll help with sales. Entities controlled by three top executives at the Related Companies closed on five condominium units totaling $9.7 million at Carnegie Park, the developer’s 325-unit conversion at 200 East 94th Street.

According to public records filed with the city Friday, firm president Bruce Beal Jr., chief executive Jeff Blau TRData LogoTINY and senior vice president Benjamin Joseph collectively bought five pads through shell companies at the 31-story building.

Records show that Blau, through an entity called Yukon Holdings LLC, bought two apartments: unit 2116 for $1.02 million, and apartment 2316, also for about $1.02 million. Beal, through Beachbox II Holdings LLC, paid $3 million for the three-bedroom pad at unit 2509 and another $1.3 million for unit 2911, Department of Finance records indicate. And Joseph, who operated 1917 CP Unit LLC, paid $3.4 million for unit 1917.

The executives all listed their address as 60 Columbus Circle, the developer’s Time Warner Center headquarters. Representatives for the firm did not immediately return requests for comment.

Collectively, Beal, Blau and Joseph paid $1,693 per square foot, in line with the sales average listed on StreetEasy of $1,543 per square foot.

It’s not uncommon for real estate executives to buy units in their own buildings, sometimes to boost sales figures for lenders but also as personal investments in buildings they believe in. It could be also done for tax purposes. From a lender’s perspective, the move can complicate deals.

In December, Steve Witkoff spent $48 million to buy five condo units at 150 Charles Street.

Related converted Carnegie Park to condos in 2014, using designs from Robert A.M. Stern. The building features a three-lane swimming pool and a half-acre private park.

StreetEasy data shows only three units actively on the market — two penthouses at $5.75 million and $4.6 million, and a three-bedroom unit on the second floor listed for $2.89 million. Corcoran Sunshine Marketing Group is jointly handling sales with Related.

Chava Gourarie contributed reporting