Mark Holliday, SL Green CEO, knight in shining armor.

Joseph Moinian's kingdom was assembled in a flurry of activity over the past decade, like a conquering warlord besieging New York City, overtaking some of the most valuable commercial properties. But like Alexander the Great or Napoleon Bonaparte, he overextended the empire, imperiling much of it when the recession hit. Yet thanks to an unlikely savior in SL Green, Mr. Moinian has managed to hold on to many of his most prized possessions, as The Journal explains today. Yet as with any lord and vassal, this arrangement come at a price. (Excuse the extended medieval metaphor—The Observer picked it up from The Journal.)

In the turbulent jungle of New York commercial real estate there are vultures and there are white knights.

For Joseph Moinian, the rags-to-riches developer who has battled to hold onto his empire, Stephen Green has mostly fallen into the savior category. Twice now, Mr. Green's company, SL Green Realty Corp., has ridden to the rescue of Mr. Moinian as he has worked out investments he made during the boom.

[...]

During the go-go years, he was one of the most active investors in the city. But after the crunch hit, he faced numerous headaches as the value of many of his properties fell below their debt levels. Mr. Moinian has surprised many by his success at holding onto most of his buildings.

But this was partly due to the help he got from SL Green. The relationship between the two companies goes back at least a decade, when SL Green sold the Moinian Group properties such as 50 W. 23rd St. and 17 Battery Place.

In addition to saving Mr. Moinian at 3 Columbus Circle, the tentacular SL Green has now come to the rescue at 180 Maiden Lane, where the firm is helping to restructure $292 million in debt. But Mr. Moinan loses control of the castle, too, as SL Green will now take an ownership stake. SL Green is also prepared to lend a hand, perhaps a heavy one, at 17 Battery Place.

"The first person that I spoke to about the partnership was SL Green and the last person I spoke to was also SL Green and nobody in between," Mr. Moinian told The Journal. It's better than dealing with the barbarians—Steve Ross, recalcitrant banks, special servicers—at the glass and steel gates.

mchaban [at] observer.com | @MC_NYC

That was Alvy Singer in Woody Allen’s Annie Hall. And he knew what he was talking about. Even the developers here lean liberal! Our evidence? The recent campaign contribution disclosures are in.

But first, some history: back when we checked in mid-July, much of the real estate world was still hemming and hawing. With the demise of hometown heroes Hillary and Rudy, they were busy contributing to neither Obama nor McCain. Among those ambivalent developers were: Vornado Realty Trust chief executive Steven Roth; SL Green’s chairman Stephen Green; Related’s chairman Stephen Ross and president Jeff Blau; Jack and William Rudin; Tishman Speyer’s Jerry and Rob Speyer and Robert Tishman; Brookfield Properties’ president Ric Clark; Boston Properties’ chief executive Edward Linde; Extell Development’s president Gary Barnett; and Harry and Billy Macklowe. Some have since made up their minds.

Case in point: on July 31, Mr. Roth and his Daryl each gave $2,300 to the Obama Victory Fund, and Ms. Roth gave an additional $2,300 to Obama for America.

SL Green's Mr. Green also made up his mind, giving $4,600 to Obama. Mr. Linde of Boston Properties on July 31 gave $4,600 to the Obama Victory Fund and $4,600 to Obama for America. The younger Macklowes also declared their allegiance to the left. In June, Billy Macklowe, the new man in charge of Macklowe Properties, and wife Julie together gave $20,000 to the the Democratic White House Victory Fund.

Of course, New York City is not without its Republicans. The Trumps--once thought of as dyed-in-the-wool Dems--are now unequivocally behind the McCain-Palin ticket. The family--Donald Sr., Donald Jr., Ivanka and Eric--has, since May, given nearly $50,000 to the campaign (not to mention another $29,000 to the Republican National Committee).

And then there are the LeFraks. Harrison LeFrak, a managing director of the LeFrak Oranization and son of the chairman, in May alone gave $65,500 to McCain Victory 2008, and another $28,500 to the Republican National Committee.

There will be more electoral Peeping Tom in Wednesday's paper.

Mr. Green--whose brother, Mark Green, lost to Mayor Bloomberg in the 2001 general election--seemed to be optimistic about the Democratic field, which he has narrowed to two realistic contenders (at least six Democrats are said to be seriously considering a run).

Mr. Green seemed to be holding Mr. Bloomberg in high regard, at least with respect to policies that affect large real estate firms: Under the Bloomberg administration, he said, “it’s a market-driven economy—he believes in a traditional free enterprise system—he's very pro development.”

SL Green, the biggest landlord in the city, has struck several Manhattan deals totaling almost $600 million in a frenzied few weeks. SL Green C.E.O. Marc Holliday described the recent moves as representative of a “complete transformation” of the Real Estate Investment Trust’s already-robust portfolio in a Tuesday quarterly conference call to investors.

As The Observer reported first online on Monday, SL Green is in contract to purchase 333 West 34th Street, a 53-year-old office tower in the heart of Hudson Yards, for $183 million. The 345,000-square-foot building just off Ninth Avenue is a classic SL Green investment: It’s a Class B space with plenty of potential to be mopped clean to attract higher-quality tenants.

Citigroup sold the building, and had leased it exclusively for its bankers, but they’ll all be gone by 2009. So by the time Moynihan Station comes to town nearby, and Vornado starts building a 2.5-million-square-foot tower at the Hotel Pennsylvania site, SL Green can start recruiting some big tenants.

SL Green is also in contract to sell 292 Madison for $140 million to an undisclosed buyer. It bought the 187,000-square-foot building for $51 million in 1999.

The Cushman & Wakefield investment sales team of Richard Baxter, Scott Latham, Jon Caplan and Ron Cohen worked on both of these transactions.

Right next-door, SL Green closed two weeks ago on a $60 million buy of 331 Madison and a $13 million buy of 48 East 43rd Street, according to city records.

Mr. Holliday told investors on Tuesday that this is “one of the most attractive development sites in midtown Manhattan,” where a 900,000-square-foot tower can be built. When an investor asked if the company would develop there, Mr. Holliday said the importance to the company was its value (in other words: They might sell).

A few blocks east, SL Green is in contract to sell the office-condo interest of floors six through 18 at 110 East 42nd Street, at the corner of Park Avenue, for $111.5 million. SL Green retained control of the 112,000 square feet of developable air rights above the building.

In other office-condo moves, SL Green is part of a joint venture to purchase 32 percent of 1745 Broadway, a four-year-old, 53-story building that serves as Random House’s headquarters. SL Green is joined in the buy by SITQ, a subsidiary of the Caisse de Depot et Placement du Quebec, and the Witkoff Group. SL Green plunked down $65 million, putting the office-condo’s value at 1745 Broadway at $520 million.

About seven blocks south, SL Green has refinanced its 41,000-square-foot retail property at 1604 Broadway for $27 million. The refinancing kicks in an incentive clause that moves SL Green’s ownership stake from 45 percent to 63 percent in the property. The Las Vegas restaurant Spotlight just opened its doors in the building.

And 12 blocks south of that, in a move the company did not announce on Tuesday, SL Green has put the 534,000-square-foot tower at the corner of 37th Street and Broadway, 1372 Broadway, up for sale and brought in Eastdil Secured to do the marketing, a source said.

All of these moves come on the heels of the biggest move in SL Green’s history: the $6 billion buy of Reckson that closed in January and included six New York City buildings totaling 5.6 million square feet.

Since that deal—when SL Green acquired prime buildings like 919 Third Avenue, 810 Seventh Avenue and 1185 Avenue of the Americas—the RE
IT has been dutifully buying, selling and repositioning.

In the first quarter of 2007, the company closed on its sale of 1 Park Avenue for $550 million; it sold its condo interests at 125 Broad Street for $273 million; and it purchased the land underneath 2 Herald Square in a joint venture for $225 million.

In addition to 1372 Broadway going on the block, principals at SL Green confirmed Tuesday that the company is looking for a buyer for the clock tower at One Madison Avenue, the iconic midtown-south skyscraper that hovers over Madison Square Park.

SL Green also bought two Long Island buildings in the first quarter for $210 million and announced a fund-from-operations increase of 88 percent in the first quarter.

And in case you think they’re done ….

“We have a lot in the pipeline for [next quarter] as well,” said Mr. Holliday.

A 17-STORY BUILDING AT 250 West 39th Street is in contract to Lincoln Property Company for $93.5 million, a source said.

Lincoln Property, along with the State of Illinois Pension System, bought the building from a joint venture of L&L Holding Co. and Investcorp.

The building is 181,000 square feet, according to PropertyShark.com, and is just east of Eighth Avenue.

L&L, led by principals David Levinson and Robert Lapidus, could use a little extra cash flow: It just went to contract to buy the Toy Building at 200 Fifth Avenue for $500 million.

The Cushman & Wakefield Fantastic Four of Richard Baxter, Scott Latham, Jon Caplan and Ron Cohen advised on this deal. The deal was reported in The New York Sun.

JOSEPH MOINIAN HAS CLOSED ON his purchase of 475 Fifth Avenue for $160 million. By the time two other Fifth Avenue deals close later this year, the developer will have purchased seven buildings on Fifth since 2004.

Mr. Moinian is in contract to buy 417 Fifth for $250 million and 245 Fifth for $190 million, as The Observer reported in February.

His first buy on Fifth was in 2004, for 530 Fifth Avenue, a 500,000-square-foot building that he bought for $210 million; and in April 2006, he bought three prewar buildings at 509, 535 and 545 Fifth Avenue, in a packaged portfolio, for $270 million.

It should be noted that—surprise!—the omnipresent Cushman & Wakefield investment-sales team of Richard Baxter, Scott Latham, Jon Caplan and Ron Cohen worked on the deals at 417, 245 and 475 Fifth Avenue.

Come Back to San Gennaro: The Mob is Deeply Missed
City officials have since strived to cleanse San Gennaro of certain less than desirable elements: No more gambling. No more booze-slinging street vendors. And, if you believe the current organizers, no more Mafia involvement. Mob mentality, though, still has its place. Go to story by Chris Shott.

Behold, a Mini-City Rises
Five years ago, Mayor Michael Bloomberg painted a utopian picture of the future of New York on the canvas of the disjointed tenements and taxi garages of West Midtown. And guess what? It's all coming true--sort of. Go to story by Matthew Schuerman.

Mayor Wants to Flood Housing Market
Land. Mark Twain said they're not making any more of it, but the Bloomberg administration is going to try anyway. Go to story by Matthew Schuerman.

Italian American Museum Plans Appropriate Move
The museum announced on Tuesday that it has purchased three buildings near the corner of Grand and Mulberry streets in the hopes of moving to Little Italy over the next three years. Go to story by Mark Wellborn.

SL Green Cranks Out $600 M. in Deals in Furious Few Weeks
SL Green, the biggest landlord in the city, has struck several Manhattan deals totaling toward $600 million in a frenzied few weeks.
Joe Moinian closes on $160 M. buy of 475 Fifth
Joseph Moinian has closed on his purchase of 475 Fifth Avenue for $160 million. By the time two other Fifth Avenue deals close later this year, the developer will have purchased seven buildings on Fifth since 2004. Go to Commercial Breaks by John Koblin.

This Club Rests on the Seventh Day
On Tuesday, a panel of appellate justices granted the former Club Deep--now called Venue--a preliminary injunction that allows its bartenders to continue concocting pricey cocktails--but only so long as the Flatiron district place stays shut on Sundays. Go to Counter Espionage by Chris Shott.

Keith Olbermann Spends $4.2 M. for Trump Condo
As a pleasingly debauched symbol of his transformation into a top-tier, top-paid newsman, Keith Olbermann has bought a sprawling 40th-floor apartment in an Upper East Side Trump condominium.
Central Park West Co-Op with Mirrored Ceiling Sells for $3.56 M.
Pornographers, even the artiest ones, do not leave behind prim apartments. Lawyer Howard Yaruss paid $3.56 million for a savaged 16th-floor co-op at 80 Central Park West. Go to Manhattan Transfers by Max Abelson.

Crashing the Stag Party of Real Estate
Developer Veronica Hackett talks about the Bronx, the High Line and why the 'very small world' of New York commercial real estate has so few women in top places. Go to The Sit-Down by John Koblin.  

‘Hot’ Hotel Market’s Really Just 98.6 Degrees
The current, post-Sept. 11 performance of the Manhattan hotel industry is merely normal, tethered as it is to a trend dating back to the Mayor Lindsay administration.  Go to The Lab by Tom Acitelli.

The cluster of cubicles that were once occupied by a buzzy cadre of researchers sits partly empty—except for the bits that have been leased to a crew belonging to a new, unrelated radio venture by Jane Fonda and Gloria Steinem. And the humor around what had once been an almost perversely upbeat operation is now more often of the gallows variety. In a recent interview, Sam Seder—one of Air America’s remaining stalwarts and the host of his own eponymous radio show—jokingly pointed to his newly functioning radiator as evidence that the place was still alive. “See?” he said. “Things are happening around here!”

But over the last couple of weeks, loyalists like Mr. Seder have become, at least, less pessimistic. The change in attitude stems from the announcement on Jan. 29 that a rescue team consisting of the publicity-shy real-estate mogul Stephen Green and his garrulous brother—former New York City Public Advocate, Nader’s Raider and all-purpose liberal gadfly Mark Green—had signed a letter of intent to purchase the struggling network.

“I am—what is it?—I am cautiously optimistic,” said Mr. Seder. “Certainly, the Greens seem very committed to this. And it seems to me they certainly have the ability to finance it.”

According to a source familiar with the deal, the Greens will be able to make their commitment to Air America official on Friday, Feb. 16, when they are expected to bid $4.25 million in a Manhattan bankruptcy court to become the newest daddies of the three-year-old enterprise.

While the attraction of this kind of undertaking might seem hard to fathom—altruism? Vanity? Genuine hope of turning a profit?—the Greens have always been an ambitious twosome.

Stephen is the elder by seven years, and he has always been his brother’s biggest booster, serving as cheerleader, advisor and financial enabler through the course of no fewer than five unsuccessful bids for public office as well as his victories. (Most recently, he contributed nearly $300,000 to Mark’s failed campaign for State Attorney General.) Should his Air America bid win out, as is expected, the network could turn out to be his biggest act of brotherly devotion yet.

Stephen is expected to function as a relatively silent partner in the deal. Mark, judging from what he said during the announcement of their bid—and from the subsequent post on his still-functioning campaign Web site from the attorney-general race—will play a more active role in the creation of content. (Mr. Green has done guest-hosting duty on Air America before.)

The question is whether they can now do something to improve the fortunes of a serially dysfunctional radio network, or whether the takeover will become yet another high-decibel, career-puncturing defeat.

“Mark Green and Stephen Green, if they want to spend money on promoting liberal concepts in the media and they have the money to keep it going, that’s fine. It just doesn’t mean it’s going to make money,” said Michael Harrison, publisher of Talkers magazine. “All it means is the company will continue until the Greens lose all their money.”

Certainly, Air America has proven to be a reliable destroyer of the fortunes of wealthy, well-meaning liberals. In less than three years of screeching truth to power with such truculent personalities as Randi Rhodes and Mike Malloy, the network has reportedly lost around $41 million. When the company filed for bankruptcy in October, it listed liabilities in excess of $20 million and assets of just $4 million.

None of the early apostles expected it to end this way. When the network launched on March 31, 2004—seven months before the Presidential election—it shuddered into existence like some computer-generated army, all swords, shields and booming footsteps. On his first day, host Al Franken vowed the defeat of George W. Bush with the words, “He is going down.”

But the operation, heavy on enthusiasm but light on experience, quickly ran into some serious technical difficulties. “The problem with the place from the beginning was, there was not a lot of radio people,” said Chris Rosen, a former engineer for The Al Franken Show. “There were so few radio people there that they didn’t know how to accomplish making the jump from a good idea to executing it.”

Within two months of launching, two radio stations had pulled the network’s programming over financial disputes; paychecks arrived late; and its chief executive, chairman and vice chairman had all either quit or resigned.

It was soon discovered that the network’s chairman, Evan Cohen, had overstated his financial situation and didn’t have the cash to match his promises. (He later was found to have funneled $875,000 from the Bronx-based Gloria Wise Boys & Girls Club to the network.)

A group of investors stepped in to keep Air America running, but from that moment on, the grand experiment—the experiment that was supposed to save the country from the scourge of Rush Limbaugh, or at least offer an alternative—picked up a “troubled” descriptor that it never managed to shake.

“I think the trouble Air America has had was in its genes from the start,” said Martin Kaplan, associate dean of the University of Southern California Annenberg School for Communication and the former host of Air America’s So What Else Is News? “It was begun with the business plan of actually purchasing radio stations in big markets, which would then broadcast Air America programming 24/7. It might have been a decent strategy, but it turned out that the hundreds of millions of dollars it would have taken to do that existed only in Evan Cohen’s imagination.”

Going forward now with ostensibly secure financial backing, the challenge will be to convince a now-skeptical listening public that the same station that failed to attract them in significant numbers can actually be transformed. Whether they dress it up in new media drag or futuristic techie glitter—and whether they abandon Air America’s increasingly anachronistic network model for a more stripped-down syndication approach—the Green brothers might find that the old image is hard to purge.

At the same time, they won’t have the benefit of some of the elements that actually proved popular for the station. Janeane Garofalo, one of the station’s marquee stars, left her show with Mr. Seder last year to concentrate on her acting career. And The Al Franken Show, which was the top-rated show on Air America, has come to an end as Mr. Franken leaves, it is rumored, to pursue a bid for a U.S. Senate seat in his home state of Minnesota.

Neither of the Greens has said much publicly about how they intend to solve Air America’s woes beyond a few anodyne statements about building up talent and, in Stephen’s words from a press release, partnering “with other platforms beyond radio.” Mark has alluded to turning the network into “Air America 2.0.” Both brothers declined to be interviewed before Friday’s bankruptcy-court proceedings.

But, perhaps against all reason, hope persists. Danny Goldberg, the record producer who served in 2005 and part of 2006 as the C.E.O. of Air America, said he thought the Greens could be a different kind of owner.

“The advantage the Greens have is that it will be the first time that the people funding it will be running it. It was schizophrenic,” said Mr. Goldberg. “I’m a big fan of Mark’s, and if anyone can do it, he’s about the best I’ve heard. He’s got access to real money, he’s got credibility, and he’s got the time and the interest.”

The release is after the jump.

-- Josh Benson