A red brick building in Manhattan's trendy Tribeca owned by Yitzhak Tshuva's private venture Elad Properties LLC stands empty as a result of the inclement real estate conditions.
"The New York Observer" notes that Elad purchased the 98-year old 11-storey office block at 250 West Street alongside the banks of the Hudson River from Citigroup (NYSE: C) for $142 million in 2006. Citigroup vacated the building, and in November 2007, Elad signed a sale agreement with Coalco Corporation for $201 million, a markup of 41%. However, the sale still has not been closed after over eight months, and the property stands empty, "a hell of a long haul."
"The New York Observer" quotes Coalco New York president Mikhail Kurnev as saying that that eight months “is actually a pretty reasonable period of time,” and that he anticipated “closing in the next few months.” The paper also cites a broker, who asked to remain anonymous, who said he’d heard that Coalco was bargaining for a price reduction.
"The New York Observer" paper also quoted another source close to the negotiations who suggested that Coalco is still searching for financing, "which is remarkably scarce these days," as the paper put it. The paper notes, "Either way, one thing’s for sure. Elad, the moneyed concern behind the Plaza Hotel condo conversions, is hedging its bets. Despite its contract with Coalco, the group is apparently continuing to market the building as both a residential conversion and as commercial space."
On its website, Elad calls 250 West Street its “next great achievement in residential conversions,” describing plans for “splendid, loft style residences accessed through private elevator vestibules, [and] the finest in building amenities and on-site parking."
CBRE vice chairman Howard Fiddle is marketing the entire building as commercial space, at $59 per square foot on the 11th floor, and $55 on the first floor. The listing was last updated in July. Both he and Elad declined to comment to "The New York Observer", however, the paper quoted a source familiar with the negotiations as saying that a cross-listing is “the prudent thing to do,” particularly in this market. “Sometime these things don’t sell.”
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2008
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