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
From left: Adam Weiner and John Fish (Getty, LinkedIn, Curry)
Developer destroyed potential evidence in battle over $800M project
Developer destroyed potential evidence in battle over $800M project
Fromk left: Mauricio Umansky, Christian Ulbrich, and Scott Rechler
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
RXR's Scott Rechler, Tamir Shemesh, Richard Meruelo, and Maria Meruelo (Getty, Serhant, Coldwell Banker)
Breakups, layoffs and walkaways: No love in real estate last week
Breakups, layoffs and walkaways: No love in real estate last week
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Governor Kathy Hochul, casino chips, film camera
How Hochul’s film tax credit, casino plan affect real estate
How Hochul’s film tax credit, casino plan affect real estate
Gov. Kathy Hochul
Hochul pitches conversion tax break. Will developers bite?
Hochul pitches conversion tax break. Will developers bite?
A photo illustration of Mohegan Sun's Ray Pineault and Soloviev Group's Stefan Soloviev (Getty, Soloviev Group, Mohegan Gaming & Entertainment)
Soloviev partners with Mohegan on casino bid
Soloviev partners with Mohegan on casino bid
Seth Weissman, John Catsimatidis, Mayor Eric Adams
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
arrow_forward_ios

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

Loading...