Richard Kalikow's Gamma Real Estate Wins 3 Sutton Place Auction

The Location Of Gamma Real Estate's Sutton Place Tower

Richard Kalikow was the original lender on Bauhouse Group’s 3 Sutton Place (pictured), and yesterday he got what he was owed.

At the property’s foreclosure action, Kalikow’s Gamma Real Estate—which lent Bauhouse $147M at a 30% interest rate to assemble the site—acquired the site and its air rights for a total of $98M, outbidding Brooklyn investor Shifra Hager, The Real Deal reports.

It had been speculated that Gamma would have to pay twice that amount for the 260k BSF property. Some, like Meridian Investment Sales’ David Schechtman, who marketed the space with colleague Lipa Liberman and a JLL team of Scott Latham, Richard Baxter, Ron Cohen and Jon Caplan, believe the lower price is the final warning sign before a crash in the luxury condo development market.

Gamma could sell the property, bring in a JV partner or continue development on a planned supertall tower, but it hasn’t disclosed any plans yet.

Activist group East River Fifties president Alan Kersh said the sale is “hard evidence” that the "out of scale" supertall was continuing development. He promised to continue opposing the project until a rezoning limits building height. [TRD]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

How Long Island Projects Can Cut Through Red Tape And Community Opposition To Cross The Finish Line

Empire State Building Observation Deck Hemorrhaging Visitors, Value

Boca Raton's New Leaders Throwing 'All Kinds Of Curveballs' At Developers

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner

Mamdani Adds Millions To Program Helping Retailers Negotiate With Landlords

Canadian REIT Buys Brooklyn Medical Office For $90M: The N.Y. Deal Sheet

NYC Stops Construction On Another Office-To-Residential Conversion As Inspectors Descend On Job Sites

SL Green Cashing In On Surging Manhattan Office Market

Developers Build More Bedrooms As 99-Unit Projects Dominate

Mamdani Names Anthony Shorris CEO, Lina Khan Chair Of EDC

Landlords Sue Rental Board, Claiming 'Sham Process' Led To Rent Freeze