The Witkoff Group, owner of one of the International Toy Center buildings located at 1107 Broadway, is joining forces with a Morgan Stanley real estate fund for a $290 million condominium conversion of the property featuring 145 units, the Wall Street Journal reported. The collaborators are still searching for a financing partner, but are expected to close the deal in the next month.
Witkoff acquired the 16-story, 350,000-square-foot property for $190 million in a one-day auction in June by seller Lehman Brothers. A number of high-profile bidders attended the event, including CIM and William Macklowe, SL Green Realty, and L&L Holdings.
Witkoff and Morgan Stanley anticipate spending $100 million to renovate the building, the Journal said.
This is not the first time developers have planned condos at the site. Lehman previously lent more than $300 million to Tessler Developments for a conversion project, but Tessler defaulted on its debt before construction began. [WSJ]