Waterman, Brookfield pick up Lever House ground lease from RFR

Waterman Interests and Brookfield Office Properties through the entity WI/BSREP III 390 Park LLC acquired the ground lease from Aby Rosen’s RFR Holding through the entity 390 Park Property LLC for 1 parcel, including the tax class office building tower type with 20 or more stories (O4) at the Lever House at 390 Park Avenue in Plaza District. The deal closed on May 20, 2020 and was recorded on May 26, 2020.
The property contains a total of 262,945 square feet of built space.
The acquisition was expected. As part of the transaction, RFR assigned the lease, given a tax value of $1.25 million, to the joint venture of Brookfield and Waterman Interests, on May 20.

A loan with a face value of $110 million loan that was secured by RFR’s leasehold and owned by Richard Mandel’s Ramsfield Hospitality, was paid off at the same time.

The Korein family owns the fee under the building. The lease was timed to reset January 1, 2020, with the rent payments expected to rise from about $6 million to about $20 million. There was also a $6 million transfer between the Waterman/Brookfield entities. It was unclear what that transfer represented.

Over the past five years, there have been 9 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 9 renovation/alteration projects (A2) applied for with a total estimated value of $2,357,000.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link