Russian Tea Room sold for $16 million.

The world famous Russian Tea Room at 150 West 57th St., frequented for years by VIPs and celebrities, has been sold for $16 million to the United States Golf Association (USGA). The Association plans to re-configure the property as a dining room and museum in which to showcase its extensive collection of golf memorabila.

Richard Baxter and Yoron Cohen of Insignia/ESG's Capital Advisors Group arranged the high-profile transaction. The Russian Tea Room has garnered a flurry of media attention over the past ten years from its original sale to the late Warner Leroy, the $32 million renovation, grand reopening and eventual closing and bankruptcy filing following his death.

The $32 million renovation, included the new construction of a 4-story building with approximately 26,000 SF running through the block from 56th to 57th Street just east of Seventh Avenue. The building was designed and finished to the elaborate specifications of Leroy, and included extraordinary ceiling heights, several state of the art kitchens, and elaborate decor to mimic turn of the century St. Petersburg. Leroy's business ventures include the country's most successful restaurant, Tavern on the Green, and he had hoped to bring the same success to the Russian Tea Room. Unfortunately, Leroys failing health and eventual demise, the decline in restaurant revenue caused by the economy and Sept. 11 and the debt service to cover the costs of construction, crippled operations at the Russian Tea Room and resulted in the bankruptcy filing in the summer of 2002.

Subsequently, at the direction of bankruptcy counsel Squire Sanders, Alan Garmise, the president of Leroy Ventures, interviewed a number of Manhattan commercial brokerage firms in order to select an agent to sell 150 W. 57th St.

While interviewing the various brokers, Garmise and counsel stressed the need to find a qualified buyer who could adhere to the stringent requirements of the bankruptcy proceedings which would be required to close the deal.

Attorneys Andrew Jagoda and Jordan Kroop of Squire Sanders represented the sellers, and the buyer was represented by Marc Abrams of Wilke Farr & Gallagher.