The last week of August started with billionaire Charles Cohen landing a bit of equity while trying to wiggle out of a tough spot.
Steve Roth’s Vornado Realty Trust signed an agreement to buy Cohen’s 623 Fifth Avenue for $218M, a sale that helps pay off Cohen’s nearly $200 million judgment to Fortress.
The building, which stands 75 percent vacant, will be redeveloped into Class A office space.
Albert Behler is not having the best run of it either and may be ready to cede control of his real estate investment trust, Paramount Group.
The major office landlord is in the midst of a second round of bidding for a potential sale to go private, drawing the likes of major institutions such as Vornado and SL Green to the table.
The potential sale coincides with growing scrutiny over the chief executive officer’s compensation, including more than $4 million in previously undisclosed payments for personal and business interests.
Paramount is under SEC investigation for conflict of interest and executive compensation disclosures.
Back on the disappointing sales front, Penthouse 27 at Trump Park Avenue sold for $7.3 million, barely half of its $14 million purchase price in 2016 by businessman Robert Tillis.
Tillis and his wife, Meryl, spent four years trying to sell the 4,200-square-foot condo, dealing with multiple price cuts and a two-year rental period.
Despite the big slash, the sale is still the priciest at Trump Park Avenue since Donald Trump took office. It follows a trend of declining prices for Trump-branded condos in Manhattan since 2016.
There’s at least one developer reveling in good news as August comes to a close.
Alloy Development landed $500 million in financing for One Third Avenue, a 583-unit tower in Downtown Brooklyn that is expected to be the world’s tallest passive house building, embracing a design aimed at reducing energy costs through extreme insulation
The funding includes $375 million in loans from Kayne Anderson Real Estate and $120 million in equity from Vistria Group; Alloy is contributing an additional $40 million.
One Third Avenue is the second phase of the “Alloy Block” project and will include 143 affordable housing units, office space and retail space.
Read more
Charles Cohen to sell Fifth Ave building at massive discount to Vornado
SL Green, Empire State among bidders for Paramount Group: sources
Donald Trump’s former Park Avenue condo sells for 50% loss
