Lev Leviev and Shaya Boymelgreen have set the terms to their break-up. The two were a seemingly ubiquitous part of the city's recent real estate building boom, but not any more. Still, like most breakups, theirs will linger until it's permanent.
A press release comes from Israel with lots of juicy details, and it's Lev Leviev who's the big-time winner.
Lev Leviev will gain full development control on the group's most valued projects at 23 Wall Street and 88 Leonard Street; and also the commercial part of the 15 Broad Street project, Gowanus Village; and the commercial and parking parts of the W Squared project. Shaya Boymelgreen will assume full control of Atlantic Court, 10 Chelsea, Beachfront Community and the commercial parts of 84 Front Street and 85 Adams Street.
Leviev Boymlegreen – which Lev Leviev owns 65 percent and Shaya Boymelgreen owns 35 percent – will together continue the residential development of 84 Front Street, 15 Broad Street, 85 Adams Street, and will continue the 20 Pine Street project under 50/50 ownership. At any point, the partners can sell their portion, or bring a third investor on any of these projects.
And, as a continuation of their dissolution, Boymelgreen Developers has sold an Upper West Side rental building at 323 West 96th Street for $74 million, it was announced today. The 15-story building had 172 units. It was developed by Shaya Boymelgreen and Lev Leviev in 2003, and represents another building sale as they divide up their interests after reportedly having a feud. Earlier this year, Boymelgreen Developers sold 14 Wall Street for $125 million.
The hot press release from Israel below.
Leviev and Boymelgreen reach deal on joint US assets: Africa-Israel and Boymelgreen Developers have swapped New York projects jointly held through Leviev Boymelgreen.
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK), controlled by chairman Lev Leviev, has signed an memorandum of understanding (MOU) with Boymelgreen Developers LLC, owned by Shaya Boymelgreen, regarding the companies' joint venture in the US, Leviev Boymelgreen and its various projects. Africa-Israel owns 65 percent of Leviev Boymelgreen and Boymelgreen Developers owns 35 percent, under an agreement from April 2002.
Under the new agreement, Leviev Boymelgreen will continue development of the 84 Front Street, 15 Broad Street, and 85 Adams Street projects, on the original terms of the partnership, and will continue the 20 Pine Street project under 50/50 ownership. All these projects are in New York City. Africa-Israel and Boymelgreen Developers can sell their shares in these projects to a third party subject to tag-along or drag-along rights. Proceeds from these projects will first go to repaying their bank loans, then repayment of loans to Africa-Israel, repayment of the companies' shareholders' equity investments in the projects, payment of management fees to Boymelgreen Developers, and finally, payment of the balance to Africa-Israel and Boymelgreen Developers on the basis of their stakes in the projects.
Boymelgreen Developers will transfer to Africa-Israel its rights in the joint ventures in New York: the 23 Wall Street project, the commercial part of the 15 Broad Street project, Gowanus Village, 88 Leonard Street, and the commercial and parking parts of the W Squared project. Boymelgreen Developers will also transfer to Africa-Israel all joint ventures in Miami.
In exchange, Africa-Israel will transfer to Boymelgreen Developers all its rights in the following projects in New York: Atlantic Court; 10 Chelsea, Beachfront Community, and the commercial parts of the 84 Front Street and 85 Adams Street projects.
Africa-Israel said that any additional financing in the remaining joint projects would be made on the basis of the two companies' shares in them.
Africa-Israel said that following the exchange of properties in this agreement, its commitments in the projects transferred to Boymelgreen Developers, booked at a value of $4.7 million, have ended, and its commitments to the financial institutions for the projects it has taken over in full total $408.3 million. Since Africa-Israel already owned 65 percent of these projects, the added commitment totals about $142.4 million.
Africa-Israel has already bought out Boymelgreen Developers in their joint projects in Las Vegas.