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Bistricer’s Clipper Equity Backs  Out of Deal to Buy Ritz Plaza

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David Bistricer (left) and his son at their Borough Park office.
Clipper Equity, led by David Bistricer, recently backed out of a $400 million ”soft contract” to purchase the Ritz Plaza, a Midtown West rental tower (pictured above) near Times Square

Clipper Equity, led by David Bistricer, recently backed out of a $400 million ”soft contract” to purchase the Ritz Plaza, a Midtown West rental tower near Times Square. Clipper Equity, headquartered in Brooklyn, is a full-service firm specialized in NY & NJ new development, multifamily rentals and condominiums. The partnership is known for their 2007 purchase of the Starrett City housing complex in Brooklyn for $1.3 Billion. In September, Clipper Equity entered a soft contract to purchase the 475,200 square-foot property at 235 West 48th Street in Manhattan, from Ofer Yardeni’s Stonehenge Partners for about $840 per square foot, as reported by The Real Deal.

Stonehenge acquired the property in 1996 from its developer, Carter Management, who built the building in the late 1980s. The 43-story midtown rental tower has 479 residential units, but also includes office and retail space, as well as a garage component. The desirable building boasts a full-time doorman and concierge service, on-site valet, an indoor swimming pool and fitness center, a resident’s lounge and social events, an exclusive Maven+ car-sharing program and impressive river and city views, as per Street Easy. Studios in the building rent for about $3,050 per month, and a five bedroom penthouse is one of the few listings currently available, asking $10,062 a month. The U.S. General Services Administration leases 20,000 square feet of the office space.

Stonehenge Partners, based in Columbus Ohio, is a nation-wide asset management company which directs the investment activities for approximately $700 million in mezzanine and equity commitments. The firm has since taken the rental building off the market altogether. Eastdil Secured which it hired in April to market the property is reportedly no longer involved, as per the Real Deal. Clipper, Stonehenge and Eastdil each declined to comment. The reason Clipper Equity abandoned the deal is unknown. Earlier in November, Clipper took out a $104 million loan from New York Community Bank, to close on a $172 million purchase of Upper West Side rentals, the Brewster, on 21 West 86th Street. That 155-unit was purchased from Barings Real Estate Advisers for $1,214 per square foot.

It is not very uncommon for investors to change their minds before entering a hard contract on a major real estate transaction. Thor Equities’ Joseph Sitt backed out of a “soft contract” to buy the Caiola family’s rental portfolio for $780 million. Blackstone Group went on to purchase the property for less than $700 million. Developer Michael Shvo forsook a deal to purchase the offices at 685 Fifth Avenue in Midtown. Turkish jewelry company, the Gulaylar Group, was happy to then purchase the 20-story property for $160 million.

By: Andrew Kopkind

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