Printer Friendly

Malkin, Rose join for major purchase.

Two leading real estate families have teamed up to buy a prime retail strip in the East Village of Manhattan.

Members of the Malkin and Rose families signed a contract to purchase the commercial condominium unit encompassing 36 stores for $19.25 million.

The property was featured in a public auction of Federal Deposit Insurance Company-held properties on Dec. 1 and 2. In addition to the East Village property, the auction featured The Marriott Hotel in Stamford, Connecticut; The Farmington Inn in Farmington, Connecticut; and others.

A partnership structured by Rose Associates, Inc. and W & M Properties, headed by Anthony Malkin, made the highest offer by way of sealed bid some days after the scheduled auction. Bidders were required to present a $50,000 cashiers check at the event and the winning bidder was to present a 20 percent deposit within 48 hours. A Brooklyn-based investor came forward with a $19.5 million offer at the auction, but could not present the balance. A sealed bid competition was then held a week later.

The property fell under control of the FDIC after the mortgagee, Goldome Savings Bank, went bankrupt. Goldome took over the property after the original mortgagor VMS, the Chicago-based syndication group, defaulted.

The stores are 90 percent leased. Tenants include BB'Q restaurant, Strawberry, Woolworth, Lechters, and Gristede.

The condominium occupies nearly a full square block. The retail space is on the ground floor of three separate apartment houses with entrances on Ninth Street -- 30, 44), and 50 Ninth Street. The stores face University Place, Eighth Street and Broadway. The purchase is for 66,000 square feet plus basement space, totally some 70,000 square feet.

According to Peter Malkin, each apartment building and the retail space was converted into condominium some years ago. The apartment buildings became three condominium units and the retail became one commercial condominium unit. It was sold as a single package, he said, and will be operated as a single property.

The terms of purchase, Malkin said, are cash above a purchase money mortgage provide by the FDIC. Closing of title is anticipated in March.

A Rose entity will be the leasing agent and W & M Properties Inc, is going to be the managing agent of the property. The operation of property will be under the guidance of Adam Rose of Rose Associates and Anthony Malkin of W & M Properties Inc.

Rose Associates is no stranger to the area. The company developed and manages Georgetwen Plaza at 60 East Eighth Street and Randall Housse at 63 East Ninth Street. Both properties have extensive retail.

The property, Malkin said, presents an "extraordinary" opportunity because it is near New York University and is virtually a "central city shopping mall."

The marketing and auction of the property was conducted for the FDIC by James Felt Realty Services, the New York real estate investment division of Grubb & Ellis Company, represented by Norman Livingston and Vincent Carrega.

Livingston said the property received tremendous attention from potential bidders, many of them leading figures in real estate.

"It's a very exciting piece," said Livingston. "The people who were interested in it were the `who' of real estate, which is refreshing because we hadn't heard from these people in two years."

Ron Bruder, president of The Brook-hill Group, which managed the property for the past year and a half, said he believes $19.25 million was a "reasonable price."

In June of 1991, he said, the net operating income (NOI) was $1.1 million in June of 1991. Today, he said, it is more than $2 million and, he said, it is conceivable it will go up to $2.2 million or $2.3 in the next few years.

"At $20 million with closing costs, you're talking about a pretty good property with about an 11 cap." said Bruder.
COPYRIGHT 1993 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Anthony Malkin of W and M Properties enters partnership with Rose Associates Inc. for purchase of retail property in New York, New York
Author:Fitzgerald, Therese
Publication:Real Estate Weekly
Date:Feb 17, 1993
Previous Article:Sotheby's introduces computerized brochure.
Next Article:Aponte vows to lower improvement rent hikes.

Related Articles
Raven Press expands lease.
NYC suburbs offer mixed opportunities, Malkin says.
Malkins buy Milwaukee tower.
W&M Properties refinances 10 Union Square East; early return of equity payment made to investors.
Malkin partnership acquires White Plains office building.
W&M Properties.
Anthony Malkin to speak at B'nai B'rith lunch April 9.
Warnaco Group to relocate HQ to 510 Seventh Ave. this summer.
Feet accompli as W&H leases over 800,000 r/s/f.
W&M Properties in hunt for city center retail assets.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters