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Old September 8th, 2010, 02:13 PM   #1
RobertWalpole
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NEW YORK | 3 Columbus Circle | Canceled

The 8 September 10 WSJ reports that 3 Columbus Circle, a 700,000 square foot office building, might be razed and replaced with a residential tower. A residential tower with this much square feet (and the small foot print of this tower) should exceed 300m.

http://online.wsj.com/article/SB1000...DDLETopStories

NY REAL ESTATE COMMERCIALSEPTEMBER 8, 2010.Ross Raids Wobbly Tower
Related Cos. Boss Eyes Debt-Laden 3 Columbus Circle for City's First Nordstrom

By LINGLING WEI And ELIOT BROWN

Stephen Ross, one of the nation's leading developers, has swooped in to try to snatch a troubled office tower near Columbus Circle from a smaller rival in hopes of turning the property into the city's first Nordstrom department store, according to people familiar with the matter.



The 26-story 3 Columbus Circle is at the center of a struggle for control between developers Joe Moinian and Stephen Ross.
.The 26-story building at 1775 Broadway, which has been renamed 3 Columbus Circle, is one of the crown jewels in the real-estate empire belonging to Joe Moinian, who bought many properties near the market's peak.

Mr. Moinian has been trying to hold on to the building and was close to restructuring its $250 million mortgage. But a venture led by Mr. Ross's firm, Related Cos., and Deutsche Bank AG came out of nowhere to purchase the mortgage on the property and is now seeking to foreclose, the people said.

Related has been talking to Nordstrom about its intent to foreclose on 3 Columbus Circle then demolish it and build a new tower in its place, these people said. Related, which developed the $1.7 billion Time Warner Center a block away on Columbus Circle, is thinking about putting apartments on top of the store and will seek architects to design the building in coming weeks, the people said. Nordstrom has been eyeing Manhattan for years. Representatives at Related and Nordstrom declined to comment. Mr. Moinian also declined to be interviewed.

The fight is the latest example of firms that have avoided getting clobbered by the property downturn now moving to take advantage of weakened competitors. Mr. Moinian—a 56-year-old Iranian-born developer who had his first job in a restaurant in Forest Hills, Queens, after coming to the U.S. at 16—went on a buying spree during the boom years. His portfolio grew to over 20 million square feet, but it left him with a bad hangover of over-leveraged buildings that he has been attempting to save. So far he has succeeded in restructuring most of his problem loans.

Mr. Moinian had been hoping to save 3 Columbus Circle, a 700,000-square-foot building he acquired in 2004 in a deal that valued the property at about $250 million. He spent about $100 million upgrading it. The tower is only 16% occupied, according to real-estate-services firm CoStar Group Inc. A spokeswoman for Mr. Moinian said in a written statement last month that his company, the Moinian Group, "is now actively marketing" the building and "closings [are] expected soon on major office and retail tenants."

But the struggles made 3 Columbus Circle a target for the opportunistic investors who have been circling commercial real estate, particularly in Manhattan and other prime markets. A common strategy of these investors has been to buy the debt on troubled buildings at a discount and then try to foreclose.

What's unusual about 3 Columbus Circle is that the Related venture bought at close to full face value the $250 million mortgage debt on the tower from the firm overseeing the loan, the people said. The move indicates that the Related group is determined to win control of the building in a bet that the property is worth more than the mortgage debt.

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Zuma Press

Developer Stephen Ross
.Mr. Moinian could still fend off the foreclosure attempt by paying off the mortgage debt. But that's going to be tough in a credit-starved real-estate market. Mr. Moinian also could buy time by seeking bankruptcy protection for the property, real-estate experts say.

The grab for 3 Columbus Circle is a high-stakes bet for Mr. Ross, 70 years old, who founded Related in 1972 to focus on developing government-subsidized housing. In the 1980s, the company expanded into developing luxury rentals, office towers and other commercial property. Related also is the designated developer of the massive Hudson Yards project on the West Side and is building a 1.2 million-square-foot hotel and apartment project on West 42nd Street.

In this current real-estate downturn, Mr. Ross's company has been brought in by lenders to help rescue many troubled developments. For instance, lenders to the failed Xanadu project in New Jersey have been talking to potential partners, including Related, to help complete the retail and entertainment development after a group led by Colony Capital decided to give it up to creditors last month.

The bet on 3 Columbus Circle shows that Mr. Ross is getting more aggressive, going directly after distressed commercial real-estate assets rather than waiting to be hired by an interested party. Still, the company has its share of problems, too. Among them is the company's $3 billion plan to redevelop the village at the base of the Snowmass ski mountain near Aspen, Colo. A four-bank group in July filed a notice to foreclose on the first phase of the Snowmass Base Village project due to missed payments on a $386 million construction loan. Last month, Related sued the bank group for failing to fulfill its funding commitments for the project.

While Mr. Moinian is playing defense in the struggle for 3 Columbus Circle, he has some powerful allies. He has been advised in some of his restructurings by Robert Verrone, the former head of the commercial real-estate unit of Wachovia Corp., now part of Wells Fargo & Co. Mr. Verrone, who earned the nickname "Large Loan Verrone" for his penchant for big deals during the boom times, left Wachovia in 2008 and has since been advising troubled property owners and developers.

"We have stabilized our portfolio to a great extent and will always be vigilant about protecting our assets and tenants/residents, as well as our investment partners," Mr. Moinian said in the August statement. "This is a job that never ends."

Write to Lingling Wei at [email protected]

Last edited by desertpunk; August 16th, 2012 at 02:10 PM.
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Old September 8th, 2010, 03:47 PM   #2
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Ok I'll keep watch
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Old September 8th, 2010, 04:47 PM   #3
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This is HUGE news. This is yet another 300m+ tower that will rise near the Park joining:

Carnegie 57;
Torre Verre; and
225 W 57th St.

Last edited by RobertWalpole; September 8th, 2010 at 05:09 PM.
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Old September 8th, 2010, 04:56 PM   #4
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http://therealdeal.com/newyork/artic...irst-nordstrom

Ross moves to snatch Moinian's 1775 Broadway for city's first Nordstrom
September 08, 2010 09:30AM

Stephen Ross Stephen Ross is angling to take hold of Joseph Moinian's 1775 Broadway, the distressed, 26-story office tower that once housed Newsweek magazine, and turn it into the city's first Nordstrom department store, sources told the Wall Street Journal. Moinian has been struggling to hold onto the building, which he renamed 3 Columbus Circle in conjunction with a roughly $100 million renovation, but was close to restructuring its $250 million mortgage before a venture led by Ross' the Related Companies and Deutsche Bank AG purchased the debt at nearly face value and filed to foreclose last week. Related has reportedly already talked to Nordstrom, which has been seeking Manhattan space for years, about its plan to foreclose on the property, which currently just 16 percent occupied. The company apparently told the retailer that it would demolish the existing building and build a new tower on the site, which would house the department store and, possibly, apartments above it. Though Moinian could still stave off foreclosure by paying off the mortgage or seeking bankruptcy protection, Related is said to already be looking to hire architects to design its new building. [WSJ]
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Old September 8th, 2010, 05:01 PM   #5
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http://ny.curbed.com

Building's $100 Million Renovation May Result in Wrecking Ball


Developer Joseph Moinian spent $100 million rebranding the old Newsweek building on Broadway and 57th Street as 3 Columbus Circle and covering up its masonry facade with glass. But that controversial makeover hasn't really improved the office building's standing. Only 16% of the space is occupied, and Moinian is now facing foreclosure. Hey, here's an idea: Whaddaya say we tear the whole thing down and try again?
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Old September 8th, 2010, 05:25 PM   #6
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I don't think it really makes sense but cool development anyways. So if it's supposed to be 300m+, why is it in proposed skyscrapers?
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Old September 8th, 2010, 05:32 PM   #7
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they call it renovation they destroyed that tower...
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Old September 8th, 2010, 05:37 PM   #8
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Quote:
Originally Posted by Ni3lS View Post
I don't think it really makes sense but cool development anyways. So if it's supposed to be 300m+, why is it in proposed skyscrapers?
It makes a lot of sense. Related acquired a very valuable piece of land for a firesale price of about $250m. It could build, as of right (i.e., not requiring city permission), a 300+m tower with unobstructed views of Central Park and the city that could generate sales of $4k/sf.

I put in it skyscrapers because I don't know the final height. It likely will be over 300m, but it could be 280 or 290m. When I started the thread for 225 W57th St., it was moved from proposed supertalls to proposed skyscrapers because we don't know the height, but it surely will be well over 300m.
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Old September 8th, 2010, 07:29 PM   #9
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NYGUY
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Old September 8th, 2010, 08:14 PM   #10
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I hope to replace this building for a new tower and decent high.
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Old September 8th, 2010, 10:38 PM   #11
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NY keep surprising me...
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Old September 9th, 2010, 02:54 AM   #12
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http://www.cityrealty.com/new-york-c...demolish/34502


Related and Deutsche Bank reportedly buy mortgage for 1775 Broadway to demolish it

September 08, 2010 By Carter B. Horsley



The Related Cos. and Deutsche Bank AG have acquired the $250 million mortgage on the 26-story office building at 1775 Broadway between Broadway and Eighth Avenue, which is known now as 3 Columbus Circle, and are considering demolishing it to convert part of it to retail space for Nordstrom and part of it residential condominiums, according to an article today at wsj.com by Lingling Wei and Eliot Brown.

The article said that "according to people familiar with the matter," Related "has been talking to Nordstrom about its intent to foreclose on 3 Columbus Circle then demolish it and building a new tower in its pace," adding that Related "is thinking about putting apartments on top of the store and will seek architects to design the building in coming weeks."

The building contains about 700,000 square feet of office space and is, according to the article, "one of the crown jewels in the real estate empire belonging to Joe Moinian, who bought many properties near the market's peak."

The building's brown brick facade is in the process of being replaced by glass. For several years, the building was the headquarters of Newsweek magazine. It is across from One Central Park Place, the Hearst tower and the Museum of Arts & Design and it is diagonally across Eighth Avenue from the Time Warner Center of which Related was a co-developer.

"Mr. Moinian has been trying to hold on to the building and was close to restructuring its $250 million mortgage," the article said, adding that "Mr. Moinian - a 56-year-old Iranian-born developer who had his first job in a restaurant in Forest Hills, Queens, after coming to the U.S. at 16 - went on a buying spree during the boom years. His portfolio grew to over 20 million square feet, but it left him with a bad hangover of over-leveraged buildings that he has been attempting to save. So far he has succeeded in restructuring most of his problem loans."

The article indicated that "The tower is only 16% occupied, according to real-estate-services firm CoStar Group Inc."

"What's unusual about 3 Columbus Circle," the article said, "is that the Related venture bought at close to full face value the $250 million mortgage debt on the tower from the firm overseeing the loan, the people said. The move indicates that the Related group is determined to win control of the building in a bet that the property is worth more than the mortgage debt."

"Mr. Moinian," the article added, "could still fend off the foreclosure attempt by paying off the mortgage debt. But that's going to be tough in a credit-starved real-estate market. Mr. Moinian also could buy time by seeking bankruptcy protection for the property, real-estate experts say."

A 2008 article by David W. Dunlap in The New York Times noted that the Gensler recladding would "obliterate evidence of the building's history and heritage as a hub of Automobile Row."

"For now, a palisade of three-story Ionic columns, supporting a neo-Classical entablature, surrounds the base of the structure. This is a visible vestige of the Colonnade Building, designed by William Welles Bosworth and developed by John A. Harriss, a deputy police commissioner who also invested in real estate. Describing the plan in February 1921, The Times noted that the columns would not be flattened in order to increase the size of the storefronts between them....In 1922, the Hudson Motor Car Company leased the Colonnade Building's principal storefront, at Broadway and 57th Street, as a sales room for its Essex line of automobiles. (In recent decades, this space was the home of Coliseum Books....) Until 1926, the three-story colonnade was all that stood on the site. Then, Shreve & Lamb designed a 22-story addition, principally for the General Motors Corporation....General Motors projected its name on the skyline from the top of the building....Eventually, G.M. occupied almost all of the building. It stayed there until 1968, when it moved across town to Fifth Avenue."
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Old September 10th, 2010, 06:40 AM   #13
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How about before demolition, we remove the blue curtain wall first? The demolition of 3 Columbus Square should be simalar to that of 130 Liberty Street. That new residential tower should have a curtain wall similar to what was proposed for the existing building.
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Old September 10th, 2010, 02:26 PM   #14
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Related generally uses R.A.M. Stern for their very high-end projects, and he almost always uses granite facades. Consider his design for Silverstein's Four Seasons hotel at the WTC.
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Old October 6th, 2010, 01:55 PM   #15
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October 6, 2010

Lois Weiss - Between the Bricks

Now that he's closed on the mortgage purchase of 3 Columbus, a.k.a. 1775 Broadway, Stephen Ross of Related Cos. is trying to woo building owner Joseph Moinian into his demolition camp.

As you've heard, Ross wants to tear down the newly renovated commercial office tower and construct a luxury residential condominium with -- we've learned -- 135 units that he figures he needs to sell for over $2,000 a square foot, and a retail base, which may or may not include Nordstrom's.

As The Post first revealed, Moinian, who has been partners with SL Green Realty Trust at 180 Maiden Lane and has bought and sold buildings with them over the years, has his shirtsleeves rolled up and is still working toward a deal with that trusty Real Estate Investment Trust. No comments, as you'd expect.

http://www.nypost.com/p/news/busines...#ixzz11Zi0ucNZ
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Old October 8th, 2010, 09:00 PM   #16
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I don't really care for the project on the other side of the street, this better look good.
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Old October 8th, 2010, 10:57 PM   #17
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Quote:
Originally Posted by RobertWalpole View Post

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I like this photo looks like a city in the clouds
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Old October 8th, 2010, 11:34 PM   #18
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When they bring a wrecking ball, make sure Moinian is inside. He destroyed perfectly good building by covering in glass
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Old November 13th, 2010, 03:32 AM   #19
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Battle for 3 Columbus Circle goes to court
http://www.crainsnewyork.com/article...TATE/101119944
Judge to hear case involving property owner Joseph Moinian and the holder of its $250 million mortgage, Related Cos.; the (additional) $54 million in question.

November 12, 2010 1:59 PM
The battle for control of 1775 Broadway is slated to come to a head on Monday, when a New York state Supreme Court judge is scheduled to hear arguments over whether the property's owner can pay off his mortgage now that the property is in foreclosure.
Real estate developer Joseph Moinian bought what was formerly known as 3 Columbus Circle in 2004. He refinanced it two years later with a $250 million loan from Wachovia. Earlier this year, Mr. Moinian had defaulted on the mortgage, court documents say.
In September, Related Cos. bought the $250 million mortgage and moved to foreclose on the property with the intention of tearing it down and erecting a larger building.
However, late last month Mr. Moinian reached a deal with SL Green Realty Corp., which agreed to inject an unspecified amount of cash into the property, allowing Mr. Moinian to hang on to building. But before SL Green invests, the publicly traded real estate investment trust wants to be sure that Mr. Moinian will be able to stop the foreclosure action and retain control of the property.
The dispute transcends the issue of whether the mortgage can be paid off in the midst of the foreclosure process and extends to the question of whether Mr. Moinian would also owe Related an additional $54 million prepayment charge, as Related claims. Mr. Moinian disputes that charge.
In another suit filed last month seeking $200 million in damages, Mr. Moinian charged that Related engaged in a “predatory lending scheme” designed to steal the building from him.
Mr. Moinian is in the midst of a $175 million renovation of the 26-story and nearly 777,000 square-foot property, which occupies the entire block between Broadway and Eighth Avenue and between West 57th and West 58th streets.
It is unclear if the judge will rule on Monday and if he does whether the amount of the mortgage will be addressed. The predatory lending suit is not expected to be addressed.
Mr. Moinian declined comment and his lawyer, Stephen Meister, didn't immediately return a call. Related and SL Green also declined comment.
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Old November 13th, 2010, 04:55 AM   #20
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Why should the new building contain only 135 units? that number is for a tower that is half the height of the proposed tower. That number needs to be increased.
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