New York's River House Co-op in $45 Million Accord With Club by Josh Barbanel, The Wall Street Journal Feb. 3, 2014
- River House, the 1930s cooperative tower on the East River, rebuffed
a $90 million offer to turn a five-story club house into New York's
largest and most expensive private mansion, according to people briefed
on matter.
Instead, the board of
the 26-story Art Deco tower on the East River signed a letter of intent
to sell the 62,000-square-foot, five-floor base of the building to the
same private club that had long rented the space for $45 million, far
more than the club had offered in earlier negotiations.
The club still needs
to arrange financing and raise funds for the deal to go forward,
according to letter distributed to co-op owners and club members.
In a move more in the
spirit of a private-equity fund that a co-op, even one looking to shed
a reputation for being fussy and finicky, the board put the space on
the market in September with an asking price of $130 million, after
earlier negotiations stalled.
By the time it
announced the letter of intent to sell the space to the River Club of
New York brokers for River House had let potential buyers from around
the world know that the space could be had for a mere $90 million.
The board turned aside
an offer of about that amount from an American buyer, after the club
significantly raised its offer, according to several people familiar
with deal. Other bidders came from Europe and the Middle East, they
said.
"We had very strong
interest and very strong bidding," said John Burger of Brown Harris
Stevens. He shared the listing with Kyle W. Blackmon.
The River Club has two tennis courts, a swimming pool, a squash court and a card room in its huge space.
A majority of the
building's residents are among the 900 members of the club, including
John Allison, an investment manager who is the River House co-op board
president. Mr. Allison didn't respond to request for comment.
In the past the board
had indicated it preferred to make a deal with the club, but was
prepared to consider alternatives, if the price was too low.
Now several brokers
said that the club and the resolution of the uncertainty over its
future could add significant value to the market value and quality of
life at River House.
Charles G. Berry, a
lawyer and president of the board of governors of the River Club,
declined to discuss the agreement. Under the deal, the club has 45 days
to sign a contract and and must close the deal by July.
