Sales Beat

Kaufman Closes on Purchase of Four Ground Leases from Extell

119-125 West 24th Street

Kaufman Organization and Principal Real Estate Investors have closed on their acquisition of four former Ring buildings, totaling 341,441 square feet in Nomad and the Flatiron District, from Extell Development Company.

As Commercial Observer previously reported, the deal included 13-15 West 27th Street, 45 West 27th Street, 19 West 24th Street and 119-125 West 24th Street. Depending on the valuation, the 99-year net lease cost between $175 million and $200 million, according to David E. Ash of Prince Realty Advisors, the lone broker in the deal. Read More

Sales Beat

Extell Grabs Additional $74 M. Piece of ‘Ring Portfolio,’ Sues to Force Sale

212 Fifth Avenue is among the portfolio's 14 properties (Credit: The Real Deal)

Real estate investment and finance firm Princeton Holdings has sold its interest in a one million square foot portfolio of commercial properties located in Manhattan’s Midtown South submarket for $74 million to Extell Development Company.

Buyer Extell Development Company significantly boosts its existing stake in the portfolio and, having gained at least a 50 percent stake in Read More

Sales Beat

Fate of F.M. Ring, Extell-Owned 251 Park Ave So to Be Decided at Auction in August

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An ownership feud over management of a largely vacant Midtown South property will be decided at auction in August. The 16-story prewar office building at 251 Park Avenue South, which sits nearly 70 percent vacant in the heart of the red hot submarket, is to be sold at public auction on August 28, by order of the Supreme Court of the State of New York.

The building is owned “tenancy in common”–a form of simultaneous ownership in a single property by two parties—by F.M. Ring Associates and an investor, reportedly Gary Barnett’s Extell Development. Read More

Post-Tropical Storm Sandy

Prepare They Did, Yet Property Owners Hit Hard by Sandy

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In the face of one of the worst natural disasters in the city’s history, commercial real estate landlords braced for Hurricane Sandy, employing every measure possible to hold property damage to a minimum and keep tenants safe.

But not even prophetic foresight could have allowed the city’s landlords—or New York City as a whole—to prevent much of the destruction that the mammoth storm wreaked across the five boroughs.

The road to recovery, especially in low-lying coastal areas like Staten Island, Coney Island and the Rockaways, will take months, if not years. Lower Manhattan went dark for days, with many companies largely shutting down due to power outages and salt water flooding, which is especially corrosive to mechanical equipment.

“It’s—It’s—It’s just a mess,” said Jordan Barowitz, a spokesman for the Durst Organization, who struggled to find words to describe the destruction in Lower Manhattan. Read More

Machers

Explosive Extell Demoing West 57th Tire Tower

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Gary Barnett continues to bulldoze his way across the city. Just last week, his Extell Development unveiled plans for a new tower at Riverside South; found a partner for a stalled 50-story hotel near Times Square; and secured $700 million in financing from Abu Dhabi toward One57, the condo-hotel tower on West 57th Street that will be the tallest, and likely most expensive, when it is completed. As if that were not enough, the developer has begun work just down the block on another of its long-simmering projects. Read More

Plot Twist

There’s a rule of thumb that applies to the city’s Landmarks Preservation Commission: The agency shouldn’t try to designate a building a landmark against its owner’s will unless the commission’s ready for a loud public skirmish. And, generally in the Bloomberg administration, the commission has steered clear of such battles, making for relatively few such Read More