Besen Achieves $13,000,000 in Sale-Leaseback

The Besen Group Advises Touro College on UWS Sale-Leaseback

In one of the more creative sales transactions of the year, Besen & Associates, Inc. advised Touro College in the recent $13,000,000 sale and leaseback of 521-527 Amsterdam Avenue (aka 175 West 85^th Street), a seven-story corner elevator apartment building with 30 apartments and four retail stores. Besen & Associates acted as sole broker on the transaction.

Matthew Slonim, Chief Operating Officer of Besen & Associates and Jerome D’Imperio, Vice President of Touro College handled the negotiation for Touro College which had owned the 85^th Street building since 1994 using the residential component to offer housing to its students and faculty. The negotiation had numerous moving parts one of which included an option by Touro College to repurchase the asset at the end of the net lease,” Mr. Slonim explained.

The sale had been in the works for some time and the purchaser, 175 West 85 Realty LLC, adds another prime UWS asset to its existing portfolio.  The Purchaser generates a secure net rent on the residential units and controls the more valuable retail space.

Jerome D’Imperio, the Vice President of Touro College Real Estate Development, Design and Construction states, “Negotiating such a complex transaction with an institution or nonprofit can be challenging as they have concerns that go beyond the real estate or financials. In this case, Touro College needed to ensure the future retail tenants and their respective businesses in no way would jeopardize the principals, spirit, brand or mission of Touro College.” Touro College is a Jewish-sponsored independent institution of higher and professional education established primarily to enrich the Jewish heritage, and to serve the larger American community.

The transaction is an excellent example of how a full service real estate firm like the Besen Group adds value and efficiency to transactions for both buyers and sellers.  The Besen Group’s third-party property management division, NYC Management LLC is expected to stay on as property manager and liaison between Touro College and the new owner.

Similarly, Besen Retail, the leasing division of the firm provided market intelligence during the negotiation and received the mandate from purchaser to market the currently vacant prime retail space on Amsterdam Avenue for lease.

Touro College was represented in the sale-leaseback transaction by Richard Braunstein, Esq., Assistant General Counsel of Touro College and purchaser was represented by Richard Kaplowitz, Partner at Kaplowitz & Kaplowitz, LLP. Acquisition financing was arranged by Deutsche Bank Private Bank, which was represented by Peter Seiden of LeclairRyan.