Elad to pay $46M for Tribeca condo project

Sales of units in long-stalled 5 Franklin Place to hit the market in January 2013

The long-stalled development at 5 Franklin Place in Tribeca is in contract to sell to Elad Properties, Elad confirmed to The Real Deal today. The contract price is $44.75 million, according to seller Fishman Holding’s executive vice president, Yehuda Mor.

Fishman had planned a 19-story, 58-unit condominium, after successfully bidding for the property at a September 2011 foreclosure auction. Construction has not begun, despite Fishman’s statement last year that it would start in the first quarter of this year. Foundations have been laid, however, according to an Elad spokesperson, who added that the firm, best-known for the controversial condo conversion of the Plaza Hotel, had redesigned the building slightly.

“We are very optimistic about the Tribeca market,” said Tom Elliott, executive vice president of sales and marketing for Elad. “We are looking forward to the upside.”

Sales are expected to launch in January of 2013, Elliott said.

“We think its a wonderful site, and we wish a lot of success to Elad in their new venture,” Mor said.

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The 18,747-square-foot property was acquired for $36.6 million in 2006 by an entity called Franklin Place LLC, an entity affiliated with Manhattan-based developer Sleepy Hudson, which had intended to construct a 20-story, 55-unit condo.

In September of last year, Fishman paid slightly less than the mortgage lien of $47 million for the property. Fishman was the only bidder in the foreclosure auction.


Correction/ update: An earlier version of this story stated that the contract price was $46 million, according to sources. It has been updated with the correct price after new information was provided. The story has also been updated with comment from Yehuda Mor.