Bloomberg News

Lehman Sells 1107 Broadway Building for $190.8 Million

June 30, 2011

(Updates with buyer in second paragraph.)

June 30 (Bloomberg) -- Lehman Brothers Holdings Inc. sold an office building at 1107 Broadway in Manhattan for $190.8 million, according to an e-mail sent to the defunct firm’s chief executive officer, Bryan Marsal.

Steven Witkoff, chairman and CEO of New York-based Witkoff Group, was the buyer, Kimberly Macleod, a Lehman spokeswoman, said in a separate e-mail today. Other bidders included Harry Macklowe and SL Green Realty Corp., according to the e-mail sent yesterday to Marsal.

The price for the building, once part of the former International Toy Center, rose at a two-hour auction in Manhattan yesterday from a starting bid of $161.5 million from L&L Holding Co., Anthony Barsanti, who runs Lehman’s real-estate team, wrote in the e-mail to Marsal. Net proceeds to Lehman will be about $155 million, according to the e-mail.

Lehman earlier this month won a judge’s approval to sell the building for about $160 million. U.S. Bankruptcy Judge James Peck said he “endorsed” the decision by Lehman and its creditors’ committee to “monetize an asset.”

Marsal, the co-founder of restructuring firm Alvarez & Marsal LLC, aims to raise $65 billion by selling Lehman’s assets, including real estate that it values at $13.2 billion. Lehman raised $3 billion through March from real estate sales, according to the company’s liquidation plan filed yesterday.

Closely held L&L, founded in 2000, acquires and develops Manhattan office buildings, according to its website. L&L Chairman David W. Levinson is the former vice chairman of CB Richard Ellis Group Inc.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Charles Carter, Stephen Farr.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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