The $50 million note on the development site at 111 Washington St. was just purchased for an amount "close" to par from the New York Community Bank by Pink Stone Capital, according to an article in today's edition of The New York Post by Lois Weiss.
The article said that "sources said the investment firm - run by Richard Ohebshalom, son of Empire Management's Fred Ohebshalom - is ready to either develop or get paid off on the defaulted note that is now in foreclosure. The site is across from the newly minted W Hotel and condos."
"Ray Cecora of Platinum Properties Commercial was the sole broker in the transaction. 'These deals take a long time to negotiate and put together,' Cecora said. 'I started working on 111 in September 2010 and closed this week,'" the article said.
"The assemblage itself," the article said, "is still owned by parking old-timer Gerry Brauser, who bought adjacent properties and air rights in 2006. He had every intention of developing the property into a puffed out, 50-story, 360,000-square-foot, 300-unit condo over an eight-story garage. But by 2008, the site was in contract for $98 million to BCN Development's Craig Nassi, who planned a hotel designed by Costas Kondylis. They never closed on the deal. 'We spent a lot of time and effort to design a 400,000-square-foot building and the collapse hit us like a sack of potatoes,' Nassi said. 'We believe in the location, and whoever bought the note will likely now turn it into rentals.'"
The article said that Ohebshalom did not return a call by press time.
The article said that "sources said the investment firm - run by Richard Ohebshalom, son of Empire Management's Fred Ohebshalom - is ready to either develop or get paid off on the defaulted note that is now in foreclosure. The site is across from the newly minted W Hotel and condos."
"Ray Cecora of Platinum Properties Commercial was the sole broker in the transaction. 'These deals take a long time to negotiate and put together,' Cecora said. 'I started working on 111 in September 2010 and closed this week,'" the article said.
"The assemblage itself," the article said, "is still owned by parking old-timer Gerry Brauser, who bought adjacent properties and air rights in 2006. He had every intention of developing the property into a puffed out, 50-story, 360,000-square-foot, 300-unit condo over an eight-story garage. But by 2008, the site was in contract for $98 million to BCN Development's Craig Nassi, who planned a hotel designed by Costas Kondylis. They never closed on the deal. 'We spent a lot of time and effort to design a 400,000-square-foot building and the collapse hit us like a sack of potatoes,' Nassi said. 'We believe in the location, and whoever bought the note will likely now turn it into rentals.'"
The article said that Ohebshalom did not return a call by press time.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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