Real Estate Team, Led by Mitch Gilbert, Counsels on 88 Leonard Sale

Tuesday, June 28, 2011

The Real Estate team of Mitch Gilbert, David Glanz, Alan Landzberg and Christopher Dean are serving as counsel to Africa Israel USA in the sale of 88 Leonard Street, a luxury, high-rise residential tower in Tribeca (New York, NY). The sale has been featured in numerous business and real estate journals, as the cover story of the June 28, 2011 Real Estate BisNow (New York), and as a June 27, 2011 article in entitled "Luxury Rental at 88 Leonard St. Changes Hands."

The complexities of the sale include:

  • Transferring the property subject to continuing Liberty Bonds issued by the New York State Housing Finance Agency, together with continuing credit enhancement from a separate financial institution.
  • Complying with the transfer requirements of a ground lease, including a purchase option held by the land owner.
  • Dividing the sale into two phases, of which the first is a transfer of an interest in the owning entity, with the drafting and negotiation of the related joint venture agreement.
  • Transferring such interest subject to a continuing mezzanine loan and negotiating the relevant mezzanine loan assumption documents.