De Blasio
from page 20
however. He was a vehement critic of the Moynihan Station redevelopment project by the Related Companies and Vornado Realty Trust, saying shortly after his resignation from the Port Authority that the project’s main priority was “what’s good for Related’s investors,” according to watchdog blog Atlantic Yards Report. Deputy Mayor for Housing and Economic Development: Alicia Glen De Blasio tapped longtime Goldman Sachs executive Alicia Glen to be the point person on his ambitious affordable housing plan. Glen’s responsibilities will include oversight of the city’s Department of Housing Preservation and Development and the Housing Authority, the administration said. Since 2002, Glen ran Goldman’s Urban Investment Group — which helps to finance projects in underserved communities — and oversaw the creation of more than $5 billion in development of residential, mixed-use and commercial projects across the country. Prior to that,
she was the assistant commissioner for housing finance at HPD under Giuliani. “Alicia knows the development community well, but she is also very civic-minded,” said Gotham Organization president David Picket. Picket, who added that he knows Glen personally, said her capital markets savvy and experience at HPD would help de Blasio realize his goal of increasing the city’s housing stock. REBNY’s Spinola said in a statement that the decision “continues a string of exceptionally talented and knowledgeable individuals who will work with the new mayor to steer our city moving forward.” Chair, City Council Land Use Committee: David Greenfield An attorney by training, David Greenfield represents Brooklyn’s 44th Council District, which includes the Midwood and Borough Park neighborhoods. Greenfield’s connection to both de Blasio and Council Speaker Melissa Mark-Viverito’s voter base, Sheinkopf said,
made him a natural pick for the coveted position of land use committee chair. This key panel approves development projects and has veto power over City Planning Department rezoning proposals. “Brooklyn did well in the election,” Sheinkopf said, “and the great rule in politics is that you do help your friends and you do punish your enemies.” Greenfield is known as a staunch loyalist of Brooklyn’s Democratic Party Chair Frank Seddio. “We have every expectation that he will be diligent and fair in helping to focus the committee on the important issues facing the city, including creating more good jobs and housing for all New Yorkers,” Spinola said in a statement to Crain’s about the appointment. Campaign finance records shows that Greenfield’s donors include several members of the Gindi family, real estate players and owners of the large discount department store chain Century 21, as well as Richard Cohen, a principal at real estate investment firm GTIS Partners. TRD
Helmsley from page 49 With the Helmsleys now long gone, and the estate’s last New York City properties expected to transfer soon, TRD analyzed what happened to their Big Apple buildings and how much they sold for. We looked at the 24 New York properties the estate owned as of May 2009, which were listed in court documents in connection with Leona’s death. The estate made no purchases since then because its main mission is the disposition of its assets. In court documents, the estate’s trustees put the value of the entire portfolio at $5.2 billion, although they noted that $2 billion of that was in municipal bonds. They also said the estate had “more than 80 interests in real property” in 17 states. And there is no doubt that the estate has benefited greatly from timing its sales to the improving Manhattan investment sales market. “Certainly we are in an upswing over the last two or three years in Manhattan, and throughout the country, and [the estate has] been a big beneficiary of that,” said Dan Fasulo, managing director at data firm Real Capital Analytics.
ceeds from its property sales to the Helmsleys’ charitable trust. Today the estate is led by five trustees: Leona’s sister-in-law Susan Rosenthal, Leona’s grandsons Walter and David Panzirer, Leona’s friend John Codey and her attorney Sandor Frankel. A look at the estate’s portfolio provides a unique lens into a vibrant period of New York City real estate history. That’s largely because when Helmsley made his mark in the business, in the 1930s through the 1980s, property owners shared buildings with groups of friends, family and business associates. “This is the way the old timers did deals in New York. There was a lot of syndication, and Helmsley was one of those guys,” said Fasulo. “Given the complex nature of its partnerships, it should not be surprising that unwinding many of the assets was complex.” The proceedings were so complex that in 2009, the estate’s trustees — which at that time include Leona’s brother, Alvin Rosenthal, rather than Alvin’s wife — argued in Manhattan’s Surrogate’s Court for an advance payment of $4.5 Harry Helmsley first got his start in million for their efforts, which they New York City real estate in 1925, were awarded in 2012. and began buying properties in Helmsley’s ownership inter1936. He eventually owned or manests varied widely. In some inaged as much as 28 million square stances, he owned and controlled feet, most of that with partners, properties alone. In other cases, he owned the land, but leased it including bigwigs of the time like Lawrence Wien, Bernard Kayden The Helmsley estate recently sold its stake in the icon- long-term to another entity. He ic Empire State Building. (Bottom) CBRE broker Darcy and Irving Schneider. also owned stakes in leaseholds Stacom, who advised the estate. Harry amassed the kind of empire at properties owned by other enthat is typically held on to by subsequent generations, but tities. And in a few instances, including the Empire State he had no children of his own. Leona, his second wife, did Building, he owned portions of the operating sublease. have children, but when she died, the remaining proper- All of those complicated arrangements were, of course, ties were directed to the estate, which turns over the pro- inherited by the estate.
The old timers
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Insiders said investment sales powerbroker Darcy Stacom, of CBRE Group, provided brokerage and advisory services to the estate on most, or all, of its sales as it sold off these final 24 New York City properties. Neither the estate nor Stacom, who served as long-time property advisor to Leona Helmsley, responded to requests for comment. But those properties sold at prices ranging from $1.6 million for a tiny lease fee in an office building to the $653 million Park Lane Hotel sale.
Unwinding assets In addition to the aforementioned sales, other high-profile properties that the estate sold since 2009 include the New York Helmsley, a hotel at 212 East 42nd Street, which Host Hotel & Resorts snapped up for $313.5 million and converted into Westin New York Grand Central; the Carlton House at 680 Madison Avenue, a hotel which Extell Development and private equity firm Angelo, Gordon teamed up to buy for $164 million and are now converting to condos; and a 50 percent stake in 1333 Broadway, which was sold to Empire State Realty Trust for $82.1 million. In many cases the Helmsleys’ ownership partners bought up their stake. The Benenson family, one long-time partner, bought the estate’s 40 percent stake in the land under the residential co-op called the Beekman at 575 Park Avenue for $5.76 million in 2010, according to Real Capital Analytics. Richard Kessler, chief operating officer at Benenson Capital Partners, said “we were constantly looking for the opportunity to do something here, and when the opportunity presented itself, we took advantage of it.” He declined to discuss the pricing. Kenneth Patton, who served from 1980 to 1992 as COO of Helmsley’s management and brokerage company, Helmsley-Spear, said many people didn’t realize how extraordinarily vast Harry’s portfolio was beyond his trophy properties. In part that may be why few in the industry are aware that the estate was such an active seller since 2009. “I found over the years that the giant image of Harry Helmsley has masked the nuance of the many holdings he had,” Patton said. Speaking about the sale of the Helmsley estate’s final New York City properties, Jones Lang LaSalle investment sale broker Richard Baxter noted “nothing last forever.” “Look around the city,” he said. “It is rare that you are going to find people owning buildings that their family built.” TRD www.TheRealDeal.com January 2012 00