The Hakimian Organization has decided not to convert the 11-story former loft building at 636 11th Avenue between 46th and 47th Street to residential condominiums.
The building overlooks the Hudson River and the Intrepid aircraft carrier museum.
The company's website in October 2005 indicated that it planned to create 450 apartments.
It bought the property in April, 2005 for $95 million from American Real Estate Management, the real estate arm of American Self Storage, which had acquired it for $45 million in 2003 in an auction held by Goldman Sachs.
SL Green Realty Corp. had entered a contract in 2004 to buy the 469,000-square-foot property but announced in January 2005 that it would not proceed. At the time, Stephen Green, the company's chairman and chief executive officer, said that "At 636 Eleventh Avenue, our engineering and design development estimates told us that the costs of redevelopment would limit our ability to produce the yield requirements we feel are needed to undertake the risks of a full redevelopment, relative to competing returns available on income producing alternatives."
Goldman Sachs was reported to have invested close to $150 million to upgrade the building to offices for two major tenants, Global Crossing and Exodus Communications, who, together, occupied about 90 percent of the building's space. Both tenants, however, ended up in bankruptcy.
According to an article by Lisa Chamberlain in today's edition of The New York Times, Cushman & Wakefield has recently begun marketing the building as office space for the Hakimian Organization, which had "decided against a residential conversion about six months ago."
The building overlooks the Hudson River and the Intrepid aircraft carrier museum.
The company's website in October 2005 indicated that it planned to create 450 apartments.
It bought the property in April, 2005 for $95 million from American Real Estate Management, the real estate arm of American Self Storage, which had acquired it for $45 million in 2003 in an auction held by Goldman Sachs.
SL Green Realty Corp. had entered a contract in 2004 to buy the 469,000-square-foot property but announced in January 2005 that it would not proceed. At the time, Stephen Green, the company's chairman and chief executive officer, said that "At 636 Eleventh Avenue, our engineering and design development estimates told us that the costs of redevelopment would limit our ability to produce the yield requirements we feel are needed to undertake the risks of a full redevelopment, relative to competing returns available on income producing alternatives."
Goldman Sachs was reported to have invested close to $150 million to upgrade the building to offices for two major tenants, Global Crossing and Exodus Communications, who, together, occupied about 90 percent of the building's space. Both tenants, however, ended up in bankruptcy.
According to an article by Lisa Chamberlain in today's edition of The New York Times, Cushman & Wakefield has recently begun marketing the building as office space for the Hakimian Organization, which had "decided against a residential conversion about six months ago."
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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