The Real Deal reported that "the property failed to solicit any bids outside of a $55 million credit bid from its lender."
A few weeks back, per TRD, Madison Realty Capital sold the loan secured by the property to 605 East 9th Community Holdings LLC, which allegedly has ties to Aaron Sosnick, a billionaire hedge fund manager who lives next door in the Christodora House.
As we first reported, the building was headed to a bankruptcy sale on Nov. 8 — this past Wednesday.
So what happened?
Real estate adviser Hilco claims it marketed the property, spoke to over 50 people and conducted individual site tours for four separate groups. But it ultimately received no offers, according to a letter obtained by The Real Deal.Buyers were turned off by the building's landmark status and the various difficulties Singer had obtaining building permits, according to Hilco. Others lost interest after reading about "the billionaire neighbor who wants to control the property."
It's unclear then what might happen next to the long-vacant property that Gregg Singer bought in a city auction in 1998. Given the history here, the narrative will likely take several more twists and turns.
Through the years, Singer wanted to turn the one-time P.S. 64 into a dorm, though those plans never materialized, and the building has sat in disrepair. The 135,000-square-foot building is zoned for “community facility use,” and any conversion to a condoplex or residential housing would require a zoning variance.
As previously noted, some residents want to see the space used again as a community center, as it was during its time as Charas/El Bohio Community Center. Singer evicted the group on Dec. 27, 2001.
Sosnick also reportedly bought the former Boys' Club of New York on 10th Street and Avenue A, now home to the Joyce Theater, several nonprofit arts groups, and a gallery.
Interesting...usually if the holder of the loan wants to bid they can successfully do so using the debt.
ReplyDeleteSosnick is a bit enigmatic but it does seem--at least for now--that he behaved responsibly with the Boys and Girls Club building.
But that dreamy car...
ReplyDeleteTear it down and build mid-income housing, there is basically none!!!! Build Stabilized housing . Who can afford $4300 for 500 sq Ft and many of the EV bldgs are falling down. What about somewhere nice .. and well kept????
ReplyDeleteAll studios ! 450 sq ft . $1700 a month… for those making under 100k … even 125k is not enough to pay $4300 ! Imagine if someone built that!