Tribeca Associates will be paying $2.7 million in rent annually to the estate of late developer Sol Goldman for them to be able to take control of almost 477,000-square-foot Financial District from a partnership headed by Gotham Realty Holdings.
The leasehold of the property runs through 2079 with Tribeca while Goldman owns it until 2035. The leasehold will change after 2035 so that the yearly rents resets to 4.5 percent of the market value of the property, as reported by The Real Deal.
Scott Latham led a JLL team that handled Gotham Realty's deal that put its share in the 30 Broad Street in 2014 with almost $170 million asking price.
In 2006, Charles Ishay led Gotham and acquired the leasehold on the office building from Murray Hill Properties, now known as MHP Real Estate Services, for $99 million. The property's annual rent that time was $430, 000.
The managing partners Mark Gordon, Bill Brodski and Eliot Ingerman who led the Tribeca Associates is best known for the 20 West 53rd Street's Baccarat Hotel and Residence in Midtown that it co-developed together with Starwood Capital Group owned by Barry Sternlicht.
According to Crain's, in spite of the low sale of high-end condos in the past year, the company has successfully sold off the big part of the project's apartments. However, the Baccarat has been sold to a Chinese Investor, the Sunshine Insurance Group, for $230 million and known as one of the expensive deals for a hotel in the city on a per room basis.
Meanwhile, during the deal, when the Tribeca Associates reached the Gotham Realty's office all Ishay had to say was "I have to run, bye." However, it appears that the deal made that day turned out to be better than another investment he made over the last real estate boom.