Wednesday, February 3, 2010

Riverton headed to auction

Riverton was back in the news today.

Riverton, like a number of complexes during the real estate boom, was bought for top dollar in 2005 by a company led by the developer Laurence Gluck, who had a plan to increase profits by replacing tenants in rent-stabilized apartments with market-rate tenants.
Lawyers familiar with the Riverton foreclosure said the sale would probably take place in March. Several groups have expressed interest in buying the property, which has 1,228 apartments in seven buildings, many of them surrounding a 700-foot-long grassy mall. But it is unclear whether any of them will offer enough money to satisfy the lender, which is represented by Wells Fargo Bank.

“We’re very interested in buying the property,” said Adam Holland, president of Jackson Management, who heads a group of investors who are circling the complex. Like Stuyvesant Town and Peter Cooper, Riverton was built in the 1940s by the Metropolitan Life Insurance Company. It sold Riverton in 1976 to Jack Holland — Adam Holland’s grandfather — and Charles A. Vincent for $12.5 million.

They, in turn, sold it to Mr. Gluck of Stellar Management in 2005 for $135 million. A year later, Mr. Gluck refinanced, getting a $225 million mortgage and a $25 million loan. That enabled him to recover his initial investment of $44 million and collect tens of millions of dollars in profit.

See history on Riverton here

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