Sitt-ing pretty on Sixth Ave.
A white knight is swooping in to rescue 2 Herald Square. Morris Bailey and his son-in-law Joseph Jerome of JEMB Realty are close to securing a $350 million deal for the leasehold on the property at the northeast corner of Sixth Avenue and West 34th Street. Tenants include a Victoria’s Secret flagship and We Work.
Sitt Asset Management, controlled by Ralph Sitt, has been shopping a recapitalization through the Harmon/Spies team at Cushman & Wakefield. Sources say the strategic alliance will enable Sitt to remain in the deal while JEMB will control three corners at Herald Square. JEMB already owns 1 Herald Center and Herald Towers, and Macy’s is on the remaining corner.
The Commercial Observer reported SL Green Realty Trust purchased the $250 million debt on the property that was due in mid-April. The Sitts had requested an extension before it was sent to a special servicer. SL Green had owned the building’s ground lease which goes to 2070 but sold it to TIAA in 2014 for $365 million. The lease provides the lessee — Sitt and soon JEMB — options to purchase throughout the term.
Now-settled family squabbles had hampered Sitt’s previous financing effort. With more equity in place, C&W is also seeking new financing so that the reconstituted partnership can pay off the SL Green debt — or even refinance. Sitt previously bought several Class B assets from the real estate investment trust when it was upgrading its portfolio.
Requests for comment were not returned.
Love wins, for now. Overcoming Love Ministries has been given a reprieve as the foreclosure action has been withdrawn — but can be refiled.
The bank trust that owns its liens was trying to foreclose on the well-respected Bed-Stuy homeless shelter for women and children.
Meanwhile, the city Finance Department is reviewing the charges that go back to 1992 — prior to the ministry buying the-then abandoned vacant building.
Howard Milstein is no longer thinking about tearing down 335 Madison Ave., but will pour $100 million into a renovation by SHoP Architects.
Son Michael Milstein’s tech hub, Grand Central Tech, is doing so well it is also expanding from 100,000 square feet to 250,0000 square feet. The hub nurtures certain startups with free incubator space while its Urban Tech Hub tenants get below-market rents.
The 1.1 million-square-foot office tower backs onto Vanderbilt Avenue and is connected to Grand Central Terminal. The 40,000square-foot floors surround a dramatic glass atrium.
Renovations include enlarging and creating a new entrance lobby and modernizing the lower façade. They will also add an astounding 150,000 square feet of retail and amenities geared toward the tenants.
“We are incredibly excited about this project, as it as an opportunity to totally reimagine what an office building should be in the 21st century,” said Howard Milstein.
Through Circle Ventures, Milstein Properties has invested in tech firms including Honest Buildings and Common.
Atlanta-based Coca-Cola is interviewing brokers who represent the former Polo Ralph Lauren store at 711 Fifth Ave., sources say.
The adjacent and widely successful Polo Bar restau- rant will remain open.
The previous rent for the entire 46,474 square feet was between $20 million and $25 million a year.
While Coke operates the World of Coca-Cola in Atlanta, it is unlikely it would open one in this fashion-oriented area.
The gain and loss of retail tenants affects city coffers from its sales and employee taxes to property taxes. Since the lease through 2030 was signed at the end of 2013, the billable assessed value for the 310,000-squarefoot building has leaped from about $70 million to $112 million. The city’s take will have also risen from $6.8 million a year to about $11.8 million starting in July.
No one returned requests for comment.
Real estate execs like music and charity, and many have music going in their garages and on the side.
Now, the Sixth Annual Real Estate Rockers in Relief will take place Wenesday at the Highline Ballroom. The opening jazz act will be the Adam Rose Trio Plus Two.
Lawyer Carl F. Schwartz of Hunton & Williams organized the event and plays bass in Normal By Day. Bands include Joey and the High Tones with David Welsh of Normandy and TBD with David Lowenfeld of World Wide Group. An all Kushner Cos. group iincludes CEO Laurent Morali and singer Karen Zabarsky. The Do Dahs have Billy Mendelson of Newmark Grubb Knight Frank as well as Paul Pariser of Taconic Investment Partners and his brother, Evan, of HFF. Paul’s son Spencer, of Taconic, plays in the Little Darlings and son Sheldon from Alliance-Bernstein will be a special guest.
The beneficiary charity, Namcha, focuses on domestic relief efforts for disasters like Superstorm Sandy.