NEW YORK CITY—GlobeSt.com has confirmed published reports stating that The Durst Organization has closed on the acquisition of a distressed East Harlem development site for nearly $91 million.
A company spokesman says the firm plans to “start from scratch” on a new development plan for the parcel, at 1800 Park Ave. Located on the corner of East 125th Street, next to the elevated subway, Durst first went into contract on the property with then owner Ian Bruce Eichner back in June, according to The Real Deal.
The former owner reportedly bought the site in 2013 from Vornado Realty Trust for $66 million. He intended to build a 32-story mixed-use building that would feature 682 rental apartments but defaulted on his debt before he could build the project.
Flash forward to this year, when the Durst Organization bought nearly $100 million in defaulted debt on the property and moved to foreclose on it, the Deal reports. The company later abandoned those plans, alternatively working out a deal with Eichner to buy the site. Prior to trading the site, Eichner poured a concrete foundation in order to have it in place before the January 2016 expiration of the 421a tax abatement.
Durst CEO Douglas Durst tells the New York Post that if the company builds in Harlem it likely will include a “significant amount of affordable housing.”
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
A company spokesman says the firm plans to “start from scratch” on a new development plan for the parcel, at 1800 Park Ave. Located on the corner of East 125th Street, next to the elevated subway, Durst first went into contract on the property with then owner Ian Bruce Eichner back in June, according to The Real Deal.
The former owner reportedly bought the site in 2013 from
Flash forward to this year, when the Durst Organization bought nearly $100 million in defaulted debt on the property and moved to foreclose on it, the Deal reports. The company later abandoned those plans, alternatively working out a deal with Eichner to buy the site. Prior to trading the site, Eichner poured a concrete foundation in order to have it in place before the January 2016 expiration of the 421a tax abatement.
Durst CEO Douglas Durst tells the
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
