L&L Banks Huge Profit on Sale of 261 Fifth Ave.
-- Home Textiles Today, 6/27/2005 12:00:00 AM
New York — —
New York — After less than two years of ownership, L&L Acquisitions is selling the 261 Fifth Ave. building for $180 million to a more than 50-year-old real estate company — The Feil Organization, also based here.
The deal is set to close in August or sooner, David Levinson, partner, L&L Acquisitions, said. The Feil Organization has already signed “a firm contract,” he added, and submitted a non-refundable deposit.
Jeffrey Feil, CEO, The Feil Organization, could not be reached for comment. But Levinson offered, “It is our understanding that the new owners have every intention of keeping this a business of showrooms of home textiles companies. This is not one of those sales where you'll see a residential conversion.”
L&L Acquisitions bought the building for $114 million in early 2004, at which point Levinson outlined plans to make improvements to the 450,000-square-foot, 26-story building and “raise the bar” in terms of services and treatment to its tenants, most of which are in the home textiles industry.
Major home textiles tenants of 261 include Croscill Home Fashions, Arlee Home Fashions, Elrene Home Fashions and Richloom.
When asked about his company's reason for selling off the property after such a short period, he rhetorically asked, “If you bought it for $114 million and someone offered you $180 million, what would you do?”
Levinson said L&L Acquisitions decided to put the building on the real estate market after receiving several offers. Within three weeks, it had accepted Feil Organization's offer.
After 295 Fifth Ave., which is dubbed “The Textile Building,” 261 Fifth Ave. is widely considered the second largest hub of home textiles showrooms here.
Levinson said during his company's ownership of 261, most of the 12 to 15 lease deals made were for new and existing home textiles tenants, including Croscill, which recently extended its lease to 2017.
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