The Hakimian Organization, Peykar Brothers Realty and Gorjian Properties announced this week that they had obtained a two-year extension on their $263 construction loan from the Bayerische Landesbank of Germany for their condo conversion of the upper floors of the former office building at 75 Wall Street.
According to an article by Amanda Fung at crains.com Monday more than half of the 346 condominium apartments in the tower are still unsold.
"The loan matured April 30, according to Rex Hakimian, an executive director at the Hakimian Organization, adding that the developers were also given an option to extend the loan for one year. The developers began work on the condo conversion three years ago, the article said.
A 253-room Hyatt hotel chain, called Andaz, is now on the lower floors of the building and the hotel opened in January about the same time as apartments were completed.
"Sales of the units, which range from 440 square foot studios to 3,420 square foot penthouses, began 18 months ago, said Mr. Hakimian, adding that he was glad Andaz opened this year as opposed to in 2009, when the hotel market was struggling. He noted that while price reductions have not been implemented in the building, the developers are negotiable on pricing for certain units. 'Contract signings slowed down a little as the market went down, but traffic to the property and inquiries have increased dramatically since the hotel opened,' he added. Prices range from $915 per square foot to $1,600 per square foot, and penthouses are asking for more than $2,400 per square foot," the article said.
In 2006, Hakimian and its partners bought the 36-story building from J.P. Morgan Chase for $185 million.
Last year, the article continued, "75 Wall introduced a successful rent-to-own program, where 100% of rent would go to the purchase price of the apartment, according to Daniel Hedaya, executive vice president of brokerage Platinum Properties, which placed renters in the building. The developers said it's is still offering that program on a limited basis. 'As the end of the term of their leases, renters are purchasing in the building,' Mr. Hedaya noted. '75 Wall is one of the best buildings downtown. Units have fantastic layouts and a lot of storage, the building has a gorgeous rooftop and amenities.'"
According to an article by Amanda Fung at crains.com Monday more than half of the 346 condominium apartments in the tower are still unsold.
"The loan matured April 30, according to Rex Hakimian, an executive director at the Hakimian Organization, adding that the developers were also given an option to extend the loan for one year. The developers began work on the condo conversion three years ago, the article said.
A 253-room Hyatt hotel chain, called Andaz, is now on the lower floors of the building and the hotel opened in January about the same time as apartments were completed.
"Sales of the units, which range from 440 square foot studios to 3,420 square foot penthouses, began 18 months ago, said Mr. Hakimian, adding that he was glad Andaz opened this year as opposed to in 2009, when the hotel market was struggling. He noted that while price reductions have not been implemented in the building, the developers are negotiable on pricing for certain units. 'Contract signings slowed down a little as the market went down, but traffic to the property and inquiries have increased dramatically since the hotel opened,' he added. Prices range from $915 per square foot to $1,600 per square foot, and penthouses are asking for more than $2,400 per square foot," the article said.
In 2006, Hakimian and its partners bought the 36-story building from J.P. Morgan Chase for $185 million.
Last year, the article continued, "75 Wall introduced a successful rent-to-own program, where 100% of rent would go to the purchase price of the apartment, according to Daniel Hedaya, executive vice president of brokerage Platinum Properties, which placed renters in the building. The developers said it's is still offering that program on a limited basis. 'As the end of the term of their leases, renters are purchasing in the building,' Mr. Hedaya noted. '75 Wall is one of the best buildings downtown. Units have fantastic layouts and a lot of storage, the building has a gorgeous rooftop and amenities.'"
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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