...45 Broad will follow.
The Full Story below brings us news that Lehman has finally cut through the red tape and it's own (strategic?) torpor to put 25 Broad on the auction block. One of the more high profile casualties of the Lehman collapse and the condo boom, 25 Broad was being developed by Kent Swig into luxury condos. Reworked with minimal effort by LCOR associates into high end rental, the property hits the block with $338M in liens on it.
What isn't mentioned in the Full Story below, is the accidental controlling interest that 25 Broad has in whatever goes on at nearby 45 Broad. Originally slated to be a 62 story Nobu branded hotel, also defaulted on by Swig, 45 Broad was auctioned in late 2011. It was repurchased by Lehman for $77M. The difficulty with transforming 45 Broad from it's current empty lot status (other than the $550/buildable SF Lehman repurchased it for), is that it is landlocked on it's block. Hemmed in on the north by the Leman Prep Academy (yes that is Leman , not Lehman) and the south by the 31 story 55 Broad Street, 45 Broad Street only has 63' of street frontage. On the back- 25 Broad, with possibly the most bizarre T shaped lot and footprint in all of NYC realestate, occupies the entire rear lotline of 45 Broad and seals it in from having any hope of a service entrance, loading dock or similar facility required of any inevitable large building development.
A future developer of 45 Broad will need to cut a deal with 25 Broad for use of one if it's old parking units to gain access to the rear of the lot by way of a common alley that runs alongside the nearby William Beaver House on South William Street. Without this access, it will be very tough to establish an A-class street presence, for whatever gets built.
At Cubed Advisory we know that not all real estate problems are about $/SF or zoning or construction methods. Sometimes it is as simple as property geometry, who your neighbors are and how much they want to charge you to be friends.
Labels: 25 Broad, 45 Broad, development, Kent Swig, LCOR, Lehman