Gamma Real Estate’s $98M bid wins debt-ridden Sutton Place site at foreclosure auction

December 13, 2016

The debt-beleagured Sutton Place site that included plans for a 900-foot-tall luxury condo from starchitect Norman Foster has finally had its day at the auction, and the winning bidder was N. Richard Kalikow’s Gamma Real Estate, according to The Real Deal. A bankruptcy judge authorized the sale of the property at 3 Sutton Place in September, after Joseph Beninati’s Bauhouse Group failed to pay back creditors and partners on the 262,000-square-foot development. Gamma controlled the entities that originally loaned Beninati $130 million, but as of today the developer outbid Brooklyn investor Isaac Hager, paying $86 million for the site and $12 million for additional air rights, far less than the predicted $187 million price tag.

As 6sqft previously reported, a group of local residents and elected officials, including Councilmen Ben Kallos and Dan Garodnick and Manhattan Borough President Gale Brewer, are pushing for the city to limit the height of what can be built at the site. At the end of last month, they “submitted a plan to the City Planning Commission that proposes a height cap of 260 feet for the area bounded by East 52nd and East 59th streets east of First Avenue where there is currently no limit on how tall apartment towers can be.”

Kalikow hasn’t revealed his plans for the site; as of now, he could sell, bring the Foster condo to fruition, or take on a joint-venture partner.


[Via TRD]



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