Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, has received the go ahead from New York State Attorney General Andrew Cuomo to convert the Apthorp apartment building on Manhattan's Upper West Side into condominiums.
Leviev faced opposition to the conversion from the building's residents and his partner in the project, Mann Realty Associates, since they bought the building in 2006 for $426 million.
With the outbreak of the global economic crisis 17 months ago, the Apthorp, like other residential projects in Manhattan, faced marketing challenges. In addition, continuation of the Apthorp project was conditional on the sale of 15% of the building's 163 apartments by September 15, 2009.
"The Wall Street Journal" called the Apthorp "One of the longest-running and contentious condo conversions in recent memory." The 102-year old historic building, built by the Astor family, occupies an entire block at Broadway and West 79 Street.
According to "Crain's", prices for condos start at $1.5 million and rise to $16.6 million. A three-bedroom apartment in contract was listed at $21 million.
The New York Attorney General's Office began a review of the conversion in September 2009. The approval is subject to stipulations on the Apthorp's managers, carrying out necessary repairs before closing sales of apartments. They include insulating and fire proofing pipes, ensuring asbestos abatement in converted apartments, fixing structural defects in the basement, fire proofing the boiler room and electric room, and improving plumbing in the building.
Earlier this year, Prudential Douglas Elliman, which is marketing apartments in the building, said 36 contracts were signed, more than the 25 apartments Leviev needed to sell for the condo-conversion plan to be declared effective.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010
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