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]

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