Alex Sapir is selling a Madison Avenue building that was at the center of an ugly family feud for more than $200 million.
Jonathan Bennett’s AmTrust RE is in contract to buy the 22-story 260 Madison Avenue from Sapir for $271 million, according to an announcement AmTrust made on the Tel Aviv Stock Exchange. AmTrust, headquartered in the Financial District, has been listed on TASE since 2021.
The 1950s-era building has a large vacancy to fill. The buyer said the 570,000-square-foot property is only 68 percent leased, with about $10 million of annual net operating income.
AmTrust plans to invest $60 to $70 million to stabilize and lease the building, and expects NOI to increase to $20 million.
The company expects to close the deal by the end of the year and is seeking financing of up to 60 to 65 percent of the purchase price.
Sapir’s family has owned the building and another one across the street, the 28-story 261 Madison Avenue, which is not part of the AmTrust deal, since 1997.Â
The properties were at the center of a dispute between Sapir and his brother-in-law Rotem Rosen. Sapir sued Rosen in 2022, alleging Rosen lined his pockets with money from the Sapir Organization. Sapir accused Rosen of enlisting his brothers, Sapir Org. general counsel Omer Rosen and head of development Tom Rosen, to issue themselves a $580,000 personal loan from 260-261 Madison Avenue.
The two sides settled the case in 2022.
Sapir had put the properties up for sale in 2021, seeking a price tag of $600 million, but no deal ever went through.
The buildings, meanwhile, struggled amid the acrimony. The $126 million CMBS loan on the properties was sent to special servicing in November 2022, but soon after Sapir refinanced the properties with $326 million.
AmTrust, meanwhile, paid $65 million last year to buy Savanna’s 360 Lexington Avenue, a big discount to the $180 million Savanna paid in 2019.
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