46 Terrace in Riverside sold for $1.925 (bidding war, I believe) in 2007. Asking price as of today? $1.525.
38 Khakum Wood, a building lot purchased by Scott Lawler (Broadway Partners) for $4.8 million, is down today to $3.8. That’s bad enough, but Scotty, while busy building Broadway Partners up into a REIT behemoth and watching it implode this year, poured a fortune into a foundation for a 17,000 sq. ft. house (and doesn’t every rich man want to start a foundation?). He put the land and foundation back on the market for – I am not kidding, this is not a typo – $8.5 million in 2007 and has been slicing that price ever since. So what’s a three – acre building site in Khakum Wood worth? Not $8.5 million and probably not $3.8, either. But at some price, someone will want this dirt pile, won’t they?
UPDATE: Thanks to Frankie Foker, here’s a story about Lawler’s woes from a nifty website called Developerimplode.com. The site’s so much fun I’m adding it to my links. Is this a great partnership or what?
The Queens native, who owns multiple homes in Greenwich, Conn., and Nantucket, Mass., is a self-made mogul. He started Broadway in 2000, after stints at financial outfits including BlackRock and UBS.
Broadway’s first purchase, a former school in Westchester, cost a mere $4.8 million. The company grew modestly until 2005. At that point, Mr. Lawlor switched to the fast track, launching a series of real estate investment funds backed by large pension funds and others. At about the same time, a dispute over how the fund’s profits would be paid out led three of Mr. Lawlor’s partners to quit, with two of them suing him for back pay.
In 2006, Broadway bought its first Manhattan office tower, paying $216 million for 660 Madison Ave. After that, Mr. Lawlor picked up the pace as he piled on more debt. In the same year, he bought 10 buildings from Beacon Capital Partners—including Boston’s striking John Hancock Tower—in a $3.3 billion deal. Six months later, he purchased 24 more buildings from Beacon for $5 billion. Little more than a year ago, with the credit markets already seizing up, Mr. Lawlor added another trophy, 280 Park Ave.
The question now is how much of that empire he will be left with when the commercial real estate recession that is only just beginning finally hits bottom.
“Is Scott smart? We’ll see how much he loses on the way down,” says Steve Klein, a managing partner at Joss Realty Partners who also sued Mr. Lawlor for back pay