Lipstick (Finally) Closes

The huge sale of the Lipstick Building is now official. The sought-after tower at 885 Third Avenue closed on July 9 for $606.7 million, according to city records.

The details of the deal, however, will make anyone’s head spin.

The deal originally went to contract in April, but according to the deed, the deal went to contract – and closed – on July 9. That probably has to do with the recapitalization wherein the Israeli investors Tao Tsuot and Financial Levers helped bail Haim Revah’s Metropolitan Real Estate out of a financial jam. On July 9, Tao Tsuot and Financial Levers released news that said they own 70 percent of the tower and that the sale price was actually $648.5 million. The deed says otherwise.

Then, to add just on more wrinkle: In July, SL Green announced that it paid $317 million for the majority of the land beneath the property. The city's largest office landlord, along with its investing partner Gramercy Capital Corp., now control 79 percent of the fee portion of the building and 21 percent of the leasehold position.

Got that?

Lipstick (Finally) Closes