Richard Marin, the chairman and chief executive officer of Africa Israel USA., has "left the company in an abrupt department, leaving questions about the direction of its high-profile but challenged New York projects such as the Apthorp luxury residential building and the former New York Times headquarters," according to an article today at wsj.com by Craig Karmin and Anton Troianovski.
Mr. Marin had been with the company for two years and its general counsel said in a statement that "the Company and Mr. Marin decided to go their separate ways and we wish him well."
"Mr. Marin, who was hired to help resolve the company's problem projects, made progress during his tenure and received a bonus of about $1.25 million earlier this year, according to people familiar with the matter. But he clashed with senior management over strategy and his departure occurred suddenly, these people said," the article said.
Africa Israel's chief financial officer, Tamir Kazaz, will take over as CEO, and the firm has "no plans" to name a new chairman, a company spokeswoman said.
Africa Israel "went on a shopping spree prior to the recession, snapping up a number of prestige properties that haven't all proceeded according to plan," the article said, adding that it purchased the former Times building at 229 West 43rd Street in 2007 for $525 million, three times what Tishman Speyer Properties had paid for it in 2004.
It also "acquired the Clock Tower Building at Madison Square Park for $200 million with intentions of turning the office tower into about 55 large luxury condos, but it now planning to sell around 100 smaller units and is negotiating a new construction loan on the project," the article said.
In 2007, Africa Israel took a 50% stake in the Apthorp, a 102-year-old landmark building on the west side of Broadway between 78th and 79th Streets, for $426 million, one of the highest prices ever paid for a residential building and "the project has proved to be one of New York's most contentious condo-conversion plans, with the developers fighting tenants as well as each other. Sales of 29 of the building's 163 units have closed, according to Africa Israel," the article said.
"It's unclear," the article continued, "what the disagreements between Mr. Marin and senior management were about. But big decisions still need to be made about such major issues as financing, construction time tables and marketing."
The article noted that "Mr. Marin had a long career in finance, including helping build up the derivatives unit at Bankers Trust and as the chairman of Deutsche Bank Asset Management," adding that "in 2003, he was made head of Bear Stearns Asset Management but was replaced in 2007 after the implosion of two hedge funds that borrowed money to invest in securities backed by risky mortgage loans."
Africa Israel Investments, the parent company of Africa Israel USA, was started by Israeli billionaire Lev Leviev.
Mr. Marin had been with the company for two years and its general counsel said in a statement that "the Company and Mr. Marin decided to go their separate ways and we wish him well."
"Mr. Marin, who was hired to help resolve the company's problem projects, made progress during his tenure and received a bonus of about $1.25 million earlier this year, according to people familiar with the matter. But he clashed with senior management over strategy and his departure occurred suddenly, these people said," the article said.
Africa Israel's chief financial officer, Tamir Kazaz, will take over as CEO, and the firm has "no plans" to name a new chairman, a company spokeswoman said.
Africa Israel "went on a shopping spree prior to the recession, snapping up a number of prestige properties that haven't all proceeded according to plan," the article said, adding that it purchased the former Times building at 229 West 43rd Street in 2007 for $525 million, three times what Tishman Speyer Properties had paid for it in 2004.
It also "acquired the Clock Tower Building at Madison Square Park for $200 million with intentions of turning the office tower into about 55 large luxury condos, but it now planning to sell around 100 smaller units and is negotiating a new construction loan on the project," the article said.
In 2007, Africa Israel took a 50% stake in the Apthorp, a 102-year-old landmark building on the west side of Broadway between 78th and 79th Streets, for $426 million, one of the highest prices ever paid for a residential building and "the project has proved to be one of New York's most contentious condo-conversion plans, with the developers fighting tenants as well as each other. Sales of 29 of the building's 163 units have closed, according to Africa Israel," the article said.
"It's unclear," the article continued, "what the disagreements between Mr. Marin and senior management were about. But big decisions still need to be made about such major issues as financing, construction time tables and marketing."
The article noted that "Mr. Marin had a long career in finance, including helping build up the derivatives unit at Bankers Trust and as the chairman of Deutsche Bank Asset Management," adding that "in 2003, he was made head of Bear Stearns Asset Management but was replaced in 2007 after the implosion of two hedge funds that borrowed money to invest in securities backed by risky mortgage loans."
Africa Israel Investments, the parent company of Africa Israel USA, was started by Israeli billionaire Lev Leviev.
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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