Landmarked Bowery Savings Bank Building Sells For $21M

The former home of the Bowery Savings Bank at 130 Bowery sold for $20.5 million, in a deal the seller’s broker called one of the most challenging buildings he’s ever sold.

David Schechtman and Helen Hwang of Meridian Investment Sales represented the seller of the 32,700-square-foot, mixed-use property, who is officially listed as Thomas A. Draghi. Michelle Abramov and Greg Batista of Ripco Real Estate represented the buyer, Ilya Zavlunov.

The Bowery Savings Bank building, at the site of the bank’s original headquarters, was designed by legendary architect Stanford White and built from 1893 to 1895. White’s choice of Roman classical style for the building set a trend, as the traditional use of regal columns in front of American bank buildings began with 130 Bowery. Both the interior and the exterior eventually received landmark designation, and the building was most recently used as an event space for the company Capitale.

When the property went up for auction in 2019, the broker at the time, Wendy Maitland, told Bloomberg she expected the building to sell for somewhere in the $50 million range. No owner was named in the coverage at the time, but both public records and media accounts show no subsequent sale of the property until now.

In March 2022, Crain New York Business reported that Wells Fargo had sued the property’s owners, Michael and David Marvisi, “claiming they have failed to make payments on a $12 million loan since April 2020.” The article said that the bank was trying to force the Marvisis to sell, but noted that the brothers had already listed the property in January 2022 for about $35 million.

In September 2022, Commercial Observer reported that the Marvisis, who initially purchased the property in 2017, “filed for Chapter 11 protection to stave off a forced sale after defaulting on their $12 million loan from Wells Fargo,” based on documents filed in U.S. Bankruptcy Court.

CO then reported in July 2023 that lawyers on behalf of the Marvisis’ holding company, 130 Bowery Acquisition, filed a motion for a judge to approve the sale of the building to private equity firm SC Holdings for $26 million. The sale was listed as private, which, the article said, meant that “the Marvisis were able to skip out on the auction process,” but the sale fell through thanks to “a gas line issue” that has since been resolved.

Despite all this, CO reported that the building would go up for auction again in January 2025.

Schechtman told CO that he took on the listing more than two years ago, after receiving a call from the Marvisis’ bankruptcy attorneys. 

“I said to them, ‘I’m aware that you had two or three or four brokers before me. I’m aware that you were asking $50 or $60 million. You missed the market,’” said Schechtman, who advised them to steer closer to $25 million.

Schectman told CO that of the more than 1,000 deals he has closed in his career, this was one of the most challenging.

“It was a very difficult sale,” said Schectman. “It’s landmarked interior and exterior. It’s limited to what you can do with it, and it’s not exactly the best time on Earth for somebody to come in, predominantly in cash, and buy a vacant building.”

Schechtman said that he had a contracted sale for the building for $26 million in December 2024, but that the sale “fell apart” after “the sellers defaulted on the contract in bankruptcy.” Schechtman said that had the sale occurred, “the Marvisis would have walked away with real equity in the millions of dollars, because at that point, all they owed the bank was plus or minus $19 million.”

By that point, PNC Bank’s Midland Loan Services was the building’s special servicer, and Draghi, from the law firm Westerman Ball Ederer Miller Zucker & Sharfstein, was hired as plan administrator. Schechtman said that he was asked to continue working the property by both parties.

Schechtman notes that representatives from many significant potential buyers toured the property, including the National Basketball Association, Live Nation and Cipriani. 

In the end, the building was purchased for $20.5 million by Zavlunov, who Schechtman said has a “kosher catering hall business.” Schechtman also said that “100 percent of the proceeds are going to satisfy the debt,” and that Zavlunov is going to restore the property to “its former grandeur, in accordance with landmarks.”

“He’s going to update the elevator, give it a good cleaning, and probably update the lighting and entertainment portion of the venue, because it really is a beautiful, historic building, and it’s going to be for rent for catering and all kinds of events,” said Schechtman.

“130 Bowery is one of the most architecturally significant and storied buildings in New York City,” Ripco’s Abramov said in a statement to CO. “We’re proud to have represented a buyer with a deep appreciation for the building’s historic legacy and a vision to continue its role as a cultural and social landmark in the city.”

The Real Deal was first to report the sale.

Neither Michael Marvisi or David Marvisi could be reached for comment.

Larry Getlen can be reached at lgetlen@commercialobserver.com.