Steve Kassin, Xerxes take over
587 Fifth Avenue leasehold

Midtown property went through years of lawsuits

New York /
Apr.April 24, 2017 07:00 AM

After a four-year legal battle, 587 Fifth Avenue finally has a new owner.

Steve Kassin’s Infinity Real Estate quietly took a majority stake in the 10-story, 41,652-square-foot building’s leasehold for an undisclosed price at the end of 2016, according to sources, with Xerxes Group and Elyass Eshagian holding a minority interest.

Eshagian previously owned the leasehold in partnership with Asher Zamir, but the partners fell out in the wake of the building’s botched sale to Crown Acquisitions in 2011. For four years the two sides traded lawsuits to determine who controls the property, before reaching a settlement in December 2016.

In the wake of the settlement, LLCs associated with Eshagian and Xerxes’ Daniel Gohari took over the leasehold for “ten dollars and other valuable and good considerations,” property records show. A spokesperson for the new owners declined to specify the terms of the deal, citing the settlement’s confidentiality. Infinity was brought in at the time of closing, sources say.

The new owners landed a $36 million mortgage and a $9.3 million gap mortgage from Sterling National Bank in late March, property records show. In a statement, Infinity and Xerxes said they want to spend $5 million on renovations.

The building includes 3,300 square feet of retail, occupied by British clothing company Karen Millen, and 40,000 square feet of office space, 12,000 of which are vacant.

Infinity last year sold the former East Village home of Frank Stella and a nearby property for $22 million. Xerxes, the investment firm founded by brothers Arash and Daniel Gohari, made the news last year when it listed the former apartment of the late Ferrari dealer Roffredo Gaetani for sale.

(To view more retail leasing transactions, click here)


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Compass' Robert Reffkin (Illustration by Kevin Cifuentes for The Real Deal with Getty Images)
More Compass layoffs to come by October
More Compass layoffs to come by October
Illustration of Loews Corporation's Jonathan Tisch and Taubman Centers’ Robert Taubman (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Tisch, other Hamptons billionaires shamed by water authority
Tisch, other Hamptons billionaires shamed by water authority
Corcoran's Tim Davis with 1116 Meadow Lane (Tim Davis Hamptons)
Estate trades for $48M on Meadow Lane — $9M above ask
Estate trades for $48M on Meadow Lane — $9M above ask
Housing, Collapse
Housing starts collapse under inflation, high rates
Housing starts collapse under inflation, high rates
Blend Labs ceo Nima Ghamsari (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Blend)
Digital mortgage firm Blend loses $478M, sheds more of workforce
Digital mortgage firm Blend loses $478M, sheds more of workforce
arrow_forward_ios

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

Loading...