Tommy Hilfiger's plan to convert the clocktower office skyscraper on the southeast corner of Madison Avenue and 24th Street to a hotel and residential condominium "has hit a snag," people familiar with the matter maintain, according to an article by Craig Karmin in today's edition of The Wall Street Journal.
The designer had teamed with JSR Capital to sign a contract a few weeks ago to acquire the landmark building for $170 million, but the seller, Africa Israel USA and Mr. Hilfiger "have fun into problems in their efforts to close on the deal" and "Africa Israel has begun talking with other property investors about the 700-foot tower," the article said, adding that a spokesperson for Africa Israel said it "continues to be in negotiations with the party that has signed the contract."
People familiar with the matter said that Mr. Hilfiger and JSR Capital "haven't closed on a loan to pay for the conversion of the 1909 building but the article said "it's a bit murky why the deal isn't proceeding smoothly."
"Africa Israel," the article continued, "has to settle an earlier agreement with the fashion designer Versace" that the developer had hired "in 2008 to redesign the interiors" of the former MetLife Inc. building.
The designer had teamed with JSR Capital to sign a contract a few weeks ago to acquire the landmark building for $170 million, but the seller, Africa Israel USA and Mr. Hilfiger "have fun into problems in their efforts to close on the deal" and "Africa Israel has begun talking with other property investors about the 700-foot tower," the article said, adding that a spokesperson for Africa Israel said it "continues to be in negotiations with the party that has signed the contract."
People familiar with the matter said that Mr. Hilfiger and JSR Capital "haven't closed on a loan to pay for the conversion of the 1909 building but the article said "it's a bit murky why the deal isn't proceeding smoothly."
"Africa Israel," the article continued, "has to settle an earlier agreement with the fashion designer Versace" that the developer had hired "in 2008 to redesign the interiors" of the former MetLife Inc. building.
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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