18. The selection of a discount factor for each building was in accord with sound appraisal techniques and fully reflected the status of the real estate market for the kinds of properties involved.
19. In addition to the appraisals described in findings 17 and 18, Jackson-Cross Company applied similar techniques in arriving at alternate market values predicated on the assumption that the Trustees could now disaffirm the ground leases and renegotiate the terms thereof at present market rates. These alternate values are higher than the basic appraisals because of the long term nature of present lease agreements and the fact that they were executed, in most cases, many years ago when different market rates prevailed.
20. The Trustees have executed agreements of sale of their interest in six of the Properties subject to the approval of this Court, and have petitioned for approval of those agreements. Under the agreements, all subsurface rights and related surface rights necessary for rail operations have been reserved by the Trustees.
21. Pursuant to the agreements, the Trustees propose to sell the following property interests:
a. A fee interest in property, approximately 9,105 square feet in area, situate at 52 Vanderbilt Avenue, southwest corner of 45th Street and Vanderbilt Avenue, and the 20-story office building thereon known as the Vanderbilt Concourse Building (52 Vanderbilt Avenue). The property is presently leased to 51st St. Realty Corporation, an indirect wholly-owned subsidiary of Debtor, as assignee, under a lease which is terminable by either party at the end of any month on ten days' notice; the property is subleased to numerous subtenants.
b. A leasehold interest in property, approximately 15,062 square feet in area, situate at 350 Park Avenue, between 51st and 52nd Streets, which includes thereon a portion of a 30-story office building known as Manufacturers Hanover Trust Company Building (350 Park Avenue). The property is presently leased to Manufacturers Hanover Trust Company, as successor tenant, for a term expiring December 31, 1990 (subject to two 21-year renewals).
c. A combination fee and leasehold interest in property, approximately 24,970 square feet in area, situate at 280 Park Avenue, between 48th and 49th Streets, which includes thereon a 30-story office building known as Bankers Trust Building-East Building (280 Park Avenue-East). 280 Park Avenue-East is presently leased to Rose Associates for a term expiring November 30, 2006 (subject to a 21-year renewal) and subleased by Rose Associates to Bankers Trust Company.
d. A fee interest in property, approximately 12,000 square feet in area, situate at 280 Park Avenue, 124' 4" West of Park Avenue, between 48th and 49th Streets, which includes thereon a 16-story office building known as the Bankers Trust Company-Middle Building (280 Park Avenue-West). 280 Park Avenue-West is presently leased to Sigmund Sommer for a term expiring January 1, 2018 (subject to a 25-year renewal), and subleased by Sommer to Bankers Trust Company.
e. A combination fee and leasehold interest in property, approximately 69,154 square feet in area, situate at 230 Park Avenue, between 45th and 46th Streets and Vanderbilt Avenue and the northerly extension of Depew Place, and the 34-story office building thereon known as the New York General Building (230 Park Avenue). 230 Park Avenue is presently leased to New York Bank for Savings, as successor tenant, for a term expiring October 14, 1983 (subject to a 25-year renewal).
f. A fee interest in property, approximately 81, 337 square feet in area, situate at 245 Park Avenue, between 46th and 47th Streets and Lexington and Park Avenues, which includes thereon a 47-story building known as the American Brands Building (245 Park Avenue). 245 Park Avenue is presently leased to Uris 245 Park Corporation for a term expiring May 14, 2002 (subject to two 30-year renewals).
22. In addition to the mortgage liens set out in Findings 10 and 13, the six properties are also subject to various judgment and tax liens.
23. The bids accepted by the Trustees for the six properties were the highest bids submitted in each case.
24. The following tables provide a comparison of the appraised value of the properties and the accepted bids.
Table I-Present Lease
Agreements in Effect
Property Accepted Bidder Income
52 Vanderbilt Van Corner Corp. 366,000*
280 Park West Bankers Trust 80,000
245 Park Corporate Property Investors 1,234,000
350 Park Manufacturers Hanover 165,000
280 Park East Rose Associates 262,000
230 Park Corporate Property Investors 2,303,000 *
* The figures given
are net after property
taxes, and in the case
of 52 Vanderbilt and
230 Park Avenue after
allowance. Absent the
the income would be
stated at $ 4,888,000.
Property Appraised Value Net Consideration % of Consideration
to appr'd value
52 Vanderbilt 4,250,000 4,128,000 97.1%
280 Park West 1,200,000 1,211,000 100.9%
245 Park 16,200,000 14,994,000 92.6%
350 Park 2,300,000 3,351,000 145%
280 Park East 4,100,000 5,251,000 128.1%
230 Park 30,600,000 30,614,000 102%
Total 58,650,000 59,549,000 101%
* The figures
are net after
property taxes, and
in the case of 52
230 Park Avenue
after a depreciation
allowance the income
would be stated at
Table II-Appraisal Values Adjusted for Disaffirmance
Value Not Applica- Net Consideration % of Consideration
ble, Debtor owns to Alternate
fee & improvements Appraisal Values
Property terminable lease
280 Park West 1,420,000 1,211,000 85.3%
245 Park 26,400,000 14,994,000 56.8%
350 Park 5,270,000 3,351,000 63.3%
280 Park East 8,700,000 5,251,000 60.4%
230 Park 35,000,000 30,614,000 87.5%
Total 76,790,000 55,421,000 72%
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