The Real Deal New York

Feil looks to sell Billionaires’ Row building

Sources said property could trade in the area of $90M
By Rich Bockmann | May 08, 2018 01:00PM

Jeffrey Feil and 140 West 57th Street

The Feil Organization is looking to sell the site of its bungled Billionaires’ Row residential conversion project on West 57th Street.

Feil is marketing the vacant, 85,000-square-foot office building at 140 West 57th Street as a potential residential redevelopment or a boutique office renovation, according to marketing materials.

The building, which sits across the street from Extell Development’s One57 condominium tower, has been lacking office tenants since Feil stopped renewing leases in early 2016 ahead of a planned residential conversion.

“There are a number of folks looking at it to keep it as office or convert it to residential condo,” said Cushman & Wakefield’s Bob Knakal, who is marketing the site along with a team that includes Adam Spies. “At this point, I would say it could go either way.”

Sources familiar with the property said it could fetch in the ballpark of $90 million. A representative for the Feil Organization declined to comment.

Nearby, Savanna is planning a 27-story office building on the other side of the block at 106 West 56th Street. WeWork and Regus also have locations nearby on 57th Street.

The 57th Street site is currently the subject of a nearly $13 million lawsuit.

The landlord bought the building from Harry Macklowe in 2009 for $59 million, and in 2015 hired, Goldstein Hill & West to conduct a study on the feasibility of converting the property into residential use.

Feil claims the study showed the company could add about 11,000 square feet of residential space on top of the building for a total of roughly 80,000 square feet. The property could be converted into 20 residential units with a duplex apartment on top.

Feil said it stopped renewing leases in early 2016 and vacated 33 office tenants, but in October of last year learned that there was a zoning lot development agreement, or ZLDA, covering the property dating back to 1984 that limited the floor area to 63,238 square feet.

The ZLDA is part of the public property records and easily accessible, but Feil blamed the architect and last week sued the firm for $12.6 million.