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

Sitt Asset Management put it up for sale last month

TRD 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
Bob Sulentic (Getty, iStock)

CBRE income falls nearly 10%

CBRE income falls nearly 10%
From left: Paramount CEO Albert Behler, 1301 6th Avenue, 712 5th Avenue, 31 West 52nd Street (Getty; Google Maps)

Paramount Group back at work, but tenants waiting until 2021

Paramount Group back at work, but tenants waiting until 2021
Tony Malkin (Getty, iStock)

Empire State Realty Trust reports second consecutive quarterly loss

Empire State Realty Trust reports second consecutive quarterly loss
Michael Shvo and the Transamerica Building in San Francisco and  (Unsplash)

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M
Amazon CEO Jeff Bezos with (top to bottom) 5 Warehouse Lane in Elmsford in Westchester County, 2300 Linden Boulevard in Brooklyn and 1502 Bassett Avenue in the Bronx (Getty; Google Maps)

Amazon inks three warehouse deals for delivery stations

Amazon inks three warehouse deals for delivery stations
New foreclosure filings are rising again as limits are lifted (iStock)

Foreclosure filings ramp up, especially in minority neighborhoods

Foreclosure filings ramp up, especially in minority neighborhoods
WeWork CEO Sandeep Mathrani (Wikimedia)

WeWork tells members you must pay rent

WeWork tells members you must pay rent
Equity Residential chairman Sam Zell (Getty)

Equity Residential sees profits drop 58%

Equity Residential sees profits drop 58%
arrow_forward_ios

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

Loading...