Lender seizes lease at 645 Madison Avenue in Nightingale, Friedland
Friedland Properties and Nightingale Properties lost their grip on 645 Madison Avenue as lender East West Bank takes over the lease for the 164,000 square foot building.
The repossession takes the form of an assignment of lease in lieu of foreclosure. The eastern West Bank provided $ 50 million in loans to help developers acquire the building lease in 2015, according to PincusCo, including $ 5 million in construction loans.
The lease is valued at $ 79.6 million, slightly more than the $ 76 million the developers paid for the ground lease in 2015, which they bought from TF Cornerstone. Bill Ackman of Pershing Square Capital Management was also the owner through personal investment, The New York Post Previously reported.
Rents charged for the building’s offices in 2015 were estimated to be over $ 100 per square foot and the property included 36,000 square feet of vacant retail space. The two companies planned to inject capital into the building, reported The Real Deal at the time, which was the first Manhattan Project for Nightingale.
PincusCo reports that nearly 50 Building Department renovation projects have been filed for the building, costing more than $ 13 million.
Two years ago, Friedland and Nightingale put the building up for sale, but could not find a buyer. Marcus & Millichap marketed the building and requested approximately $ 120 million for this, according to the New York Post.
The assignment of the lease was closed last week. According to PincusCo’s analysis, the transfer price was $ 483 per square foot built.
Friedland Properties manager Larry Friedland is a Madison Avenue titan, but his company has recently turned to residential projects. Meanwhile, Nightingale and Wafra Capital Partners recently landed a $ 500 million loan for 111 Wall Street.
[PincusCo] – Holden Walter Warner