Posted Jun 12, 2015, 7:56 PM
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N40° 46.8925', W073° 57.3
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Join Date: Mar 2013
Location: New York, NY
Posts: 300
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Good news, this site has found multiple buyers and is weeks from closing the deal. For ~$300m, its gotta be a major developer.
Owner of 1710 Broadway has stopped making mortgage payments -
A broker representing the owner of the building said he is negotiating with four buyers for the property which is being marketed as a development site where a condo tower can rise.
http://www.crainsnewyork.com/article...state-20150612
Quote:
The owner of an office building, north of Times Square, which is being marketed as a high-priced development site that can accommodate a 1,000-foot-tall condo tower, has defaulted on its mortgage in recent months, according to a data-tracking firm.
Trepp, a company that monitors securitized mortgages, reported that C&K Properties stopped paying the $32.5 million mortgage on 1710 Broadway in April. Meanwhile, C&K Properties, a firm founded by real estate investors Meir Cohen and Ben Korman, owns the property and has spent the past several months trying to sell it to a buyer who would tear it down and build a tower with 380,000 square feet of residential and retail space.
Messrs. Cohen and Korman could not be reached for comment.
According to Trepp, the six-story office building that currently stands on the site, whose biggest tenant is the entertainment company owned by rapper and music mogul Sean Combs, doesn’t generate enough cash flow to pay its current debt.
“For every dollar the property owes, it generates about 90 cents in income,” said Sean Barrie, a research analyst at Trepp.
However, Ron Cohen, a broker at Jone Lang LaSalle who was hired by C&K Properties to market the building, called the default a "technicality" and that the owner would soon sell the diminutive property for a massive profit.
"We’re looking at a sale for nearly $300 million," said Mr. Cohen, who has been shopping the property to potential buyers since the beginning of the year. He claims 1710 Broadway will be sold in the next few weeks and Messrs. Cohen and Korman will pay off its existing mortgage, which is securitized, in full.
"We have four contracts out," Mr. Cohen said. "We’re negotiating with four different buyers."
The building is one of several development sites in the city being offered for about $1,000 per square foot—a record price for land in the city that would force developers who buy at that figure to net millions of dollars in the sale of each apartment they build.
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Last edited by Vertical_Gotham; Jun 12, 2015 at 8:07 PM.
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