JEMB Realty could soon pay $350 million for the leasehold of Sitt Asset Management’s 2 Herald Square, according to reports.
The deal is a “strategic alliance,” sources told the New York Post, and will allow Sitt to remain in the deal. The company put the leasehold on the property up for sale in late April.
The Sitt brothers paid $270 million for the leasehold on the 11-story, 354,000-square foot property in 2007. The four brothers — Eddie, Jack, Ralph and David — and their mother jointly own a 51.75 percent interest in the leasehold. A family dispute and ongoing litigation between the brothers has previously hampered refinancing efforts.
However, this week SL Green Realty bought $250M in CMBS debt on the property. The building recently secured WeWork as a tenant, but has reportedly been losing approximately $1.7 million per month, according to court documents.
JEMB Realty, founded by Morris Bailey and Joseph Jerome, will now control three corners at Herald Square — the firm owns 1 Herald Center and Herald Towers. [NYP] — Miriam Hall
(To view other commercial sales transactions that involve JEMB Realty, click here)