Silverstein snags 140 Broadway.

Local powerhouse Larry A. Silverstein and investment banking penner Morgan Seanley, Dean Witter Discover & Co., topped all other bidders to win the coveted Helmsley piece at 140 Broadway last week at a price described only as "around $190 million."

The contract was not signed as of deadline and Leona Helmsley was still reviewing the documents.

The 1.2 million square-foot property was put on the market late last fall through Eastdil Realty, after an agreement between Mrs. Helmsley and her late-husband Harry B. Helmsley's partners was reached in October, allowing the sales of certain properties to proceed.

Helmsley passed away a year ago in January, after a long illness.

Mrs. Helmsley hired Eastdil in June to review and sell some of her holdings, which could be worth $5 billion in total. She owns the majority stake in the building that is 45 percent occupied by Marine Midland, an entity of which has a minority position in the property and is expected to go along with the sale.

Other buildings under hid review now include the operating sub-lease interest at the Graybar Building at 420 Lexington, where Helmsley's former penner Peter L. Malkin has a sub-lease on the land; and 1466 Broadway, where Steven Witkoff owns the note.

Silverstein is now backed by $1 billion in a fund put together for him by the Morgan/Dean/Discover real estate group. Sources in the industry have lately insisted the developer intends to acquire properties with the intention of bundling his holdings into a real estate investment trust.

"He and Morgan Stanley have a $1 billion fund to buy buildings," said Insignia Capital Advisors Managing Director Richard Baxter. "They are very acquisitive and have now stepped up to the plate."

Silverstein has been an active low bidder on many high profile projects, including one of the nine original bidders for the Coliseum, but in this decade has not purchased any city properties.

"He's never been the high bidder on anything we offered and he's never been in the running," added Baxter. "But I'm sure it's Morgan Stanley who is pushing him to bid. He's going to be very aggressive about buying now."

Silverstein owns a strong portfolio of mostly older, Class A office properties in New York City, along with other properties elsewhere. The city properties include the 371,000 square-foot 521 Fifth Avenue, the 260,000 square-foot 529 Fifth Avenue; 530 Fifth Avenue with 414,000 square feet; 570 Seventh Avenue (which he owns with Mendik), with 155,000 square feet; 120 Broadway, with 1.7 million square feet; and Seven World Trade Center, which stood empty for much of the early 1970's, but is now primarily occupied by Salomon Smith Barney.

On Wall Street, Silverstein owns 120 Wall Street, which became dubbed as the Association Center after city aide allowed it to become a mecca for non-profits that could rent space and avoid city property taxes. That building was recently declared full after the hard work of Silverstein's son, Roger Silverstein.

At the Real Estate Board of New York dinner a few weeks ago, Silverstein told REW that Roger would now be scouring the metropolitan area for properties.

Additionally, Silverstein Properties owns a square block on 42nd Street between Eleventh and Twelfth avenues that was to he the site of a magnificent two tower residential project called River Place and is now filled with parking spaces.

That project may not be developed if the state and the city come to an agreement on extending the Javits Center north, which would take in that site and provide a 42nd Street gateway to an expanded Javits convention center.

Howard Rubenstein, who represents both Silverstein and Mrs. Helmsley, said that Mrs. Helmsley has always respected Silverstein and "Larry has always respected Leona and Harry. For years they were very friendly. She likes him a great deal. It's a transaction among people who like and help each other."

With such a strong bid price, favoritism didn't have to come into play, either. "He got it on a bid, but it's a coincidence that they are friends."

Baxter agreed, "She also had a soft spot for Larry."

Those close to Harry Helmsley always said he respected Silverstein, who also "made him laugh."

At the memorial service for Helmsley last March, Silverstein was one of those invited to speak. He remembered Helmsley at that time "as a consummate deal-maker and deal initiator. He had a facility with conceptualizing a deal and manipulating the numbers in his mind that was absolutely staggering. He had a computer for a mind that functioned spectacularly."

While Helmsley never had any children, Silverstein said, "He referred to himself as a compulsive buyer, who had to have and had to own property, and he referred to the buildings as his children."

Now Silverstein will have an opportunity to take care of one of those children.