JEMB Realty close to securing leasehold on 2 Herald Square for $350M

Sitt Asset Management put it up for sale last month

New York /
May.May 17, 2017 12:00 PM

JEMB Realty TRData LogoTINY 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)


Related Articles

arrow_forward_ios
National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
National chains paid 93% of rent in April
National chains paid 93% of rent in April
(RIPCO, iStock)
Target, Five Below, Smashburger open in new Brooklyn shopping center
Target, Five Below, Smashburger open in new Brooklyn shopping center
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Savanna’s Christopher Schlank and Nicholas Bienstock with a rendering of 141 Willoughby Street (Savanna; SLCE Architects; Fogarty Finger Architects)
Savanna nabs $264M loan for Downtown Brooklyn office project
Savanna nabs $264M loan for Downtown Brooklyn office project
Blackstone president Jon Gray and the Blackstone headquarters at 345 Park Avenue in NYC (Getty, Google Maps)
Blackstone sets office return for some vaccinated staffers
Blackstone sets office return for some vaccinated staffers
Slate Property Group's Martin Nussbaum and a rendering of the project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Watch TRD Brand Studio’s first-ever webinar on the new office normal
Optimizing the office: TRD Brand Studio webinar on the new workplace normal
Optimizing the office: TRD Brand Studio webinar on the new workplace normal
The reopening of NYC has created a surge of demand for apartments. (Getty)
Reopening sparks signs of a real estate rush
Reopening sparks signs of a real estate rush
arrow_forward_ios

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

Loading...