Posted Oct 2, 2017, 11:26 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 52,590
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https://therealdeal.com/issues_artic...ws-last-stand/
Solow’s last stand?
The litigious 89-year-old billionaire is ramping up his development game and pursuing three legacy-cementing Manhattan projects
By Kathryn Brenzel and Konrad Putzier
October 01, 2017
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For someone who’s filed hundreds of lawsuits throughout his career, evicting a begrudging retail tenant might seem trivial. But this could be Sheldon Solow’s last stand — his final court battle. And, this time, a crucial piece of his legacy as a New York City developer is at stake.
The 89-year-old is trying to kick out Metropolitan Fine Arts and Antiques, which occupies the ground floor of Solow’s 10 West 57th Street right in the middle of Billionaires’ Row. Solow is looking to demolish the building, along with five adjacent properties that he’s amassed over the past decade, to make way for a 54-story hotel and condo tower. There’s just one problem: The tenant claims that its lease doesn’t technically expire until 2023.
Solow argues that Metropolitan violated its lease in several ways, including getting convicted for selling ivory, which is banned in New York State because it comes from endangered animals.
“The fact is, these are bad people,” said Warren Estis, Solow’s attorney, referring to the tenants during a recent heated court hearing. “They don’t deny that they were selling illegal goods on the premises. They don’t deny it whatsoever.”
The shop’s owners have maintained that they didn’t know their license to sell ivory was invalid because the law only changed a few years ago. They’ve sued Solow, alleging that he’s trying to harass them out.
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SOM is designing 10 West 57th Street for Solow, who’s filed a motion for summary judgment to have Metropolitan Fine Arts and Antiques evicted so that he can erect his hotel-condo. An offering plan has not yet been filed for the project.
“He doesn’t want to wait until my client’s lease is up,” said David Rozenholc, a well-known tenant attorney who is representing Metropolitan. “It may have worked in the past, but not against me.”
If Solow wins, he may have to fight slowing hotel and condo markets.
The average number of days that new development condos spent on the market jumped by 25 percent between mid-2016 and mid-2017, according to appraisal firm Miller Samuel. It was an even higher 37 percent for luxury apartments.
Hotels aren’t doing much better. Average nightly room prices in Manhattan have dropped 11 percent over the past three years amid a surge in new supply, according to CBRE.
And while 10 West 57th may have a prestigious address steps from the Plaza Hotel, its view will likely be blocked by 9 West 57th.
“That location doesn’t have the breakout views that the other 57th Street locations have. It’s a key amenity,” said appraiser and market guru Jonathan Miller.
The chance to make serious money with luxury condo sales in this market cycle seems to be over, Miller said. “But [Solow] may be looking out five or six years from now for the next cycle to begin.”
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