The attempt by Related Companies to demolish the office building at 1775 Broadway just south of Columbus Circle and near its Time-Warner center ended Friday when it accepted a pay-off of a $250 million mortgage and a $28 million penalty charge from Joseph Moinian, according to an article in today's edition of The New York Times by Charles V. Bagli.
Mr. Moinian, "a real estate developer with a number of troubled properties, gets to keep the 26-story 1920s office building that he is renovating at the circle's southeast edge," the article said."
Although Stephen M. Ross, the head of Related who had tried to foreclose on the Moinian building, "walked away....with a $28 million profit, after five months of skirmishing," he did not gain control of the building where he had "envisioned condominiums with breathtaking views of Central Park, atop New York City's first Nordstrom department store at the base."
"Instead, Mr. Moinian paid off the $250 million mortgage, with the help of his new partner, SL Green Realty, and gave an additional $28.4 million to Mr. Ross and his partner, Deutsche Bank. The battle began last September when Mr. Ross bought the $250 million debt on the property. The building was largely empty, and Mr. Moinian was in default. Mr. Ross moved to foreclose, conducted an architectural competition for the tower and signed a deal with Nordstrom....Mr. Moinian formed a partnership with SL Green and in November sent Mr. Ross a check for $258 million. Mr. Ross rejected it, and Mr. Moinian sued."
"Mr. Moinian says he has spent $100 million refurbishing the building, also known as 3 Columbus Circle, and encasing it in glass. Real estate executives working with him say he will now try to find a retail tenant, perhaps Nordstrom....For his part, Mr. Ross, the chief executive of the Related Companies, resents being portrayed as a bully or predator....'I'm disappointed,' Mr. Ross said Sunday. 'We made a lot of money on the deal, but it certainly isn't what I envisioned. New York loses jobs and a major development by this. It's an ugly building. You can't create a silk purse from this sow's ear. It's unfortunate for his creditors.'"
The article noted that 'Mr. Ross said, and the other side confirmed, that he had offered Mr. Moinian $150 million to walk away, while he took on the mortgage. In response, Mr. Moinian asked Mr. Ross if he could buy the Time Warner Center and tear it down."
Mr. Moinian, "a real estate developer with a number of troubled properties, gets to keep the 26-story 1920s office building that he is renovating at the circle's southeast edge," the article said."
Although Stephen M. Ross, the head of Related who had tried to foreclose on the Moinian building, "walked away....with a $28 million profit, after five months of skirmishing," he did not gain control of the building where he had "envisioned condominiums with breathtaking views of Central Park, atop New York City's first Nordstrom department store at the base."
"Instead, Mr. Moinian paid off the $250 million mortgage, with the help of his new partner, SL Green Realty, and gave an additional $28.4 million to Mr. Ross and his partner, Deutsche Bank. The battle began last September when Mr. Ross bought the $250 million debt on the property. The building was largely empty, and Mr. Moinian was in default. Mr. Ross moved to foreclose, conducted an architectural competition for the tower and signed a deal with Nordstrom....Mr. Moinian formed a partnership with SL Green and in November sent Mr. Ross a check for $258 million. Mr. Ross rejected it, and Mr. Moinian sued."
"Mr. Moinian says he has spent $100 million refurbishing the building, also known as 3 Columbus Circle, and encasing it in glass. Real estate executives working with him say he will now try to find a retail tenant, perhaps Nordstrom....For his part, Mr. Ross, the chief executive of the Related Companies, resents being portrayed as a bully or predator....'I'm disappointed,' Mr. Ross said Sunday. 'We made a lot of money on the deal, but it certainly isn't what I envisioned. New York loses jobs and a major development by this. It's an ugly building. You can't create a silk purse from this sow's ear. It's unfortunate for his creditors.'"
The article noted that 'Mr. Ross said, and the other side confirmed, that he had offered Mr. Moinian $150 million to walk away, while he took on the mortgage. In response, Mr. Moinian asked Mr. Ross if he could buy the Time Warner Center and tear it down."
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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