Craig Nassi BCN Development

Court Tosses $1.5M Parking-Garage Verdict Against Beauvallon Condos

2011-07-27T08:31:00.000-07:00

DENVER — Condo developer Craig Nassi and Beauvallon Corp. are off the hook for a $1.5 million verdict a lessee won against them in a lawsuit over parking spaces, the Colorado Court of Appeals ruled Thursday.

Matrix Fitness and Spa sued the owners of the Beauvallon condos on Lincoln Street between 9th and 10th avenues for promising exclusive use of 150 parking spaces for its customers, but only delivering on 75 exclusive spaces and 75 shared spaces.

Following a June 2009 trial, Denver District Judge Norm Haglund found Nassi and Beauvallon fraudulently induced Matrix into signing the lease. He awarded Matrix $1.5 million, a figure based on expert testimony about the amount the 75 spaces could have generated through subleases.
But a three judge panel of the Colorado Court of Appeals reversed the decision.

“We conclude that the lessee did not provide competent evidence of its damages and, thus, failed to prove its claim,” wrote Judge Russell Carparelli in the court’s opinion.

The expert opinion of the parking spaces’ value ($130 a month each) was flawed, the appeals court said. Matrix’s expert based the value on the amount the fitness club could have made subleasing the spaces, but there was nothing in the lease to indicate Matrix could have subleased the spots, which were designated for use by the club’s patrons only.

Matrix gave no other evidence as to the value of the the parking spaces, the court held:
“[T]he lessee presented no evidence that the shared use of 75 spaces rather than the exclusive use of those spaces during the relevant period caused:

• payment of excessive rent;
• any of the lessee’s customers to be unable to find a
parking space in the garage;
• the lessee to have fewer patrons or to lose revenue;
• the lessee to incur expenses to pay for customer parking
elsewhere;
• a reduction in the value of the lessee’s business;
• the lessee’s business to fail; or
• other adverse effects to the lessee’s business.

Nassi was represented on appeal by Jennifer Fischer of Schlueter Mahoney & Ross, while Beauvallon was represented by Lisa Secor of Secor Law in Fort Collins. Matrix was represented by Erich Bethke and James Bailey of Senn Visciano Canges.

Developers are getting the urge for condo conversions

2011-06-28T08:11:00.000-07:00

Next month, 55 condominiums in a classic prewar building on Fifth Avenue overlooking Central Park will hit the market at prices starting at $1,000 per square foot. The opening comes after 18 months of work to convert the 15-story, brown-brick and white-limestone property, which once housed Mount Sinai Medical Center staffers, into modern luxury residences.
“This was a unique opportunity,” said Harold Fetner, president of Durst Fetner Residential, which bought 1212 Fifth Avenue for $42 million in 2009 and is spending $100 million to convert it. “It's all about location.”
These days, a growing number of developers are also betting that it's all about timing. In fact, the apartments at 1212 Fifth will be just the first in a new wave of condo conversions expected to hit the market in coming months.
Unable to secure financing from still-leery banks to build condos from the ground up, developers across the city are settling for a cheaper and easier alternative. They are snapping up existing rental or office buildings and converting them, wagering that the paucity of construction in recent years and an improving economy will combine to create a strong sellers' market.
“Now is an opportune time to do a conversion,” said Craig Nassi, chief executive of BCN Development, which is working on two condo conversions—one at Union Square and another in Brooklyn Heights. “Coming out of a three-year recession, inventory is drying up.”
BCN Development's projects are among at least a dozen condo conversions planned or in the works across Manhattan and Brooklyn. These projects include conversions of 93 Worth St., a 165,000-square-foot downtown Manhattan office building, and of 530 Park Ave., an Upper East Side rental-apartment building.
In an encouraging sign for sellers, the number of apartments listed for sale slipped in the first quarter to its lowest level since 2007, falling 5.3% from the year-earlier period, to 7,605, according to a report by Prudential Douglas Elliman and appraisal firm Miller Samuel Inc.
Some experts, however, warn that developers may be getting ahead of themselves. “Everyone is banking on the market improving,” said Jonathan Miller, chief executive of Miller Samuel.
Mr. Miller notes that the city's “shadow inventory” remains high. The term refers to the apartments that developers aren't actively marketing because they are part of projects halted during the downturn or are units in new developments and older conversions that have yet to sell out.
He also points to other danger signs: a high percentage of deals being done on an all-cash basis—which indicates that homebuyers are still having a hard time getting mortgages—plus stubbornly high unemployment and forecasts that profits on Wall Street could be crimped for years to come.
1,000 VISITORS A DAY
Even developer Mr. Fetner admits there is “still some uncertainty” in the market. Nonetheless, he's bullish on his property's prospects—and with good reason. So far, 500 people have signed up to preview the units at 1212 Fifth Avenue. Traffic to the project's website has run as high as 1,000 visitors a day.
Others are also getting upbeat.
“We feel that market conditions have stabilized, and we are looking for new product for conversion,” said Roberta Axelrod, director of condo sales and conversions for Time Equities Inc., a real estate firm that has completed a number of condo conversions in Manhattan.
Shlomi Reuveni, executive vice president at brokerage Brown Harrison Stevens Select, said he is working with developers on three new rental-to-condo conversion projects in midtown east and the Upper West Side. He expects units from those projects to hit the market in six months to a year.
“Development is a complicated business,” Mr. Reuveni said. “I strongly believe that if you build it correctly and offer a quality product, you will have a successful project in any given market.”
Similarly, BCN's Mr. Nassi is filing conversion plans for 9 E. 16th St. He expects to spend up to $3 million transforming the 15-unit, 30,000-square-foot rental building, which he bought for $17 million.
BCN expects to close on the purchase of 184 Joralemon St. in Brooklyn Heights next month. The plan is to spend up to $9.6 million turning the 12-story, 32,000-square-foot property into condos.
“It's a prestigious block, and there is a lot of financing out there for smart projects,” Mr. Nassi said.
Even some of those who got scorched during the downturn are starting new projects. Sources said Harry Macklowe, who once owned the GM Building and other midtown towers before losing them to his creditors, is in the process of scooping up a prized prewar rental building with 108 units at 737 Park Ave. to convert to condos. The price is expected to be $250 million to $255 million.
Just last week, a participant confirmed, Mr. Macklowe closed on the $70 million acquisition of a 34-unit rental building at 150 E. 72 St., which is also expected to become a condo property.
Not exactly the GM Building. But as they say in many boom-and-bust industries, you gotta restart somewhere.

Union Square Rental Building Sells for $17M, Will Go Condo

2011-05-14T22:12:00.000-07:00

Unlike other upcoming condo conversions we've mentioned lately, 9 East 16th Street should have a relatively easy time of it. The Union Square-area, Louis Korn-designed building has only market-rate tenants, the Post explains, who'll leave once their leases are up, making way for the just-announced conversion of around 15 units by BCN Development, which just purchased the building for $17 million.

A press release fills in a few more deets: work on the conversion will likely start at the end of the summer or in early fall, and the result will be one-, two-, and three-bedroom condos. No word on pricing yet, but the going condo conversion rate is high.

'MIB3' is groovy on Greene

2011-05-14T22:01:00.000-07:00

The "Men in Black III" movie is turning a Greene Street loft into a back-to-the-sixties party palace. The upcoming flick, starring Will Smith, Alice Eve and Josh Brolin as the young Tommy Lee Jones character, Agent K, has rented the 9,000 square-foot second floor of 38 Greene St., where it intends to film a crucial scene.

The space has 20 wrap-around windows on Greene and Grand streets.
"The party is going to have an Andy Warhol theme, and they got the most charming loft in SoHo," said building owner David Zar, who was told he could dress up and be an extra in the film if only the busy real estate owner had time to stand around for hours.

"MIB 3" is paying "quadruple" the normal rent, which Zar is splitting with another film industry tenant that is now waiting to move into the loft once filming is over.
The tenant-in-waiting, Logan Media, is a production and post-production facility that is now a block away at 155 Wooster St. The asking rent for its seven-year lease with options was $43 a square foot, so you can imagine what "MIB3" is paying.
Logan was repped by Glenn Teyf, who is now with Gideon Group, while Zar did the work for his own building.
"MIB3" has also rented several other Zar-owned spaces in the area to handle hair, makeup and places for those extras to hang out when they are not actually in front of the cameras.
*
The 1896-era residential loft building at 9 E. 16th St. by Union Square is in contract to be sold to BCN Development for around $17 million by an entity controlled by Maurice Laboz and William Punch. BCN will take over the current $9.975 million mortgage with Sovereign Bank.
Craig Nassi, CEO of BCN, said, "It is an amazing building with a gold-mine location, as there is a pent-up demand from people who want to live and own in the Union Square area."
The 50-foot-wide and very ornate building was designed by Louis Korn with 13-foot ceilings and lots of arched windows overlooking the park and a low-rise building to its rear.
As most of the tenants have market-rate deals, the sponsors will have about 15 units for sale once the leases are up and the plan is approved by the attorney general's office in about nine months.
Renovations to the lobby, elevators and other common elements will start as soon as they close on the project in August. Nassi is also thrilled the building has Steak Frites as its retail anchor tenant.
"It's nearly impossible to find great deals like this," said Nassi of the off-market transaction. "Most buildings like this have too many rent-regulated tenants."
*
The UK-based online fashion retailer, Net-a-Porter, just signed a 10-year, 32,144 square foot lease at 100-104 Fifth Ave. for the entire 11th and 12th floors. The asking rent was $55 a square foot for the recently purchased building. Launched in 2000, Net-a-Porter has 800 employees in the UK, and this will become its first US office. The company's 3 million fashion customers come from 170 countries, and 90 percent of them are women.
Owen Hane of Cushman & Wakefield represented Net-a-Porter.
"This is the first deal we've done post-closing," said Grant Greenspan of the Kaufman Organization who represented the building along with Michael Kaufman and Elliot Warren. Kaufman purchased the building for $93.5 million in December. "Every floor but one has a lease out for signature," Greenspan said.
*
Just in time for the International Council of Shop ping Centers big powwow in Vegas at the end of the month, where more than 20,000 brokers and re tailers are ex pected, Thor's Joseph Sitt is expanding his business inter ests with the founding of a new retail and investment company called Thor High Street Advisors.
Veteran retail brokers now on board include Chris DeCrosta, Robert Draizen and Mitchel Friedel. No one responded to repeated inquiries even though a Web site is already up and running.
*

BCN Development betting on condos in Union Square, Downtown Brooklyn

2011-05-14T21:59:00.001-07:00

BCN Development is moving forward with two condo conversion projects, with the mindset that local scarcity will lead to success in two different neighborhoods.

The developer is in contract to purchase a rental building at 9 East 16th Street for around $17 million, which will begin conversion later this summer.

“It’s a beautiful, ornate building,” said Craig Nassi, CEO of BCN. “The reason we like the deal is because it’s just so hard find any product in that submarket.” BCN was involved in a bidding war with three other developers for the building, but eventually prevailed, he said.

The Post, which first reported the deal, noted that most of the rental tenants in the property are market rate, and BCN expects to have around 15 condos to sell when the leases expire. Maurice Laboz and William Punch were the sellers.

According to PropertyShark, the 30,680 s/f building is split between 26,430 s/f of residential space and 4,250 s/f of retail. It was built in 1900 and designed by architect Louis Korn. The restaurant Steak Frites is the retail tenant.

The 50-foot-wide building will have one, two and three-bedroom condos with 13-foot ceilings, with the conversion scheduled to begin after the deal closes later in the summer. BCN will also renovate the lobby and retrofit the elevator. It has not yet selected a brokerage firm.

At 184 Joralemon Street in Downtown Brooklyn, BCN is in the clear after a lawsuit involving the building’s sale was dropped, and no appeal was filed.

United American Land, the developer of Soho Mews, had filed a lawsuit in January against Brooklyn Law School, which sold 184 Joralemon to BCN for $12 million in January. United American claimed it had a contract to buy the building for $9.2 million and a lis pendens was filed, but was later dropped.

184 Joralemon was a Brooklyn Law School dormitory for over 30 years, and is included in a proposed “Brooklyn Skyscraper” historic district by the Landmarks Preservation Commission. Joan Wexler, president of Brooklyn Law, testified against the building’s inclusion in the district, which she said would raise the rents of students. In a historic district, landlords are required to maintain their buildings’ façades, which may require additional expenses.

Now, BCN plans to spend $3 million to $4 million in renovating 184 Joralemon, and it plans to start sales at the building in August. The property’s 24 condos will start at $750,000. It is in talks with brokerages and plans to select a marketing agent soon.

“We’re in full gear,” said Nassi.

Generally, BCN seeks conversions, rather than ground-up constructions, because of the risks associated with construction lending and the difficulties in obtaining parcels. One exception is 791 Broadway, which fully leased its 11 units in 45 days. Two-bedroom units started at $3,750 per month. The site’s previous building, which was demolished, was formerly the home of poet Frank O’Hara.

BCN had also planned a condo at the Jewish Daily Forward building at 45 East 33rd Street, but ended up flipping the property to NYC Hotel 33 LLC for $20 million, after buying it a few months prior for $18.5 million.

BCN Development Unveils Luxury Rental Building: 791 Broadway Read more: NYInc - BCN Development Unveils Luxury Rental Building 791 Broadway

2011-03-22T22:55:00.000-07:00

NEW YORK, NY - 791 Broadway, the new luxury rental building by BCN Development LLC, debuts next month for first move-ins. 791 Broadway offers exquisite one and two-bedroom residences in the heart of Greenwich Village. The building is approximately 50 percent leased.

Located on Broadway and 10th Street, 791 Broadway overlooks the infamous Grace Church. The building includes approximately 10 spacious apartments with monthly rental prices starting at $3,750. The residences feature modern kitchens with Carrera marble countertops and state-of-the-art appliances, Italian porcelain bathrooms, floor to ceiling windows and hardwood floors. The building also offers residents a common rooftop garden with breathtaking views of Grace Church.

“The team at BCN Development looks forward to providing our residents with exceptional living experiences in the dynamic neighborhood of Greenwich Village,” Craig Nassi, CEO of BCN Development, said. “The apartments are an incredible value for the neighborhood where there is no brand new inventory.”

791 Broadway is located within walking distance of Union Square, Astor Place, Washington Square Park and many New York City subway lines. The neighborhood presents an eclectic mix of culture, entertainment, restaurants, cafes and world-class shopping. 791 Broadway also has a spacious ground-floor retail space suitable for a boutique or coffee shop.

Credit Suisse takes last space at 315 Park Ave. S.

2011-02-15T23:07:00.001-08:00

Adds another 48,000 square feet to already-massive space; $70 rent seen as gilded throwback to pre-recession levels
By Theresa Agovino on February 15, 2011

Credit Suisse expanded its presence at 315 Park Avenue South by signing a six-year lease for an additional 48,000 square feet at the property between East 23rd and East 24th streets. The deal means the investment bank now leases about 90% of the 100-year-old, 330,000-square-foot building, which is now 100% occupied.

Most of the Credit Suisse employees housed in that location work in information technology and can always use more space, sources close to the deal said.

Credit Suisse is paying around $70 a square foot, said Craig Nassi, chief executive of BCN Development, which owns the building. He said that is a positive sign for the real estate market because that rent is similar to those the building commanded before the recession.

BCN worked directly with Credit Suisse on the deal, Mr. Nassi said. Credit Suisse declined to comment.

BCN Plans Condos for Brooklyn Law School Property

2011-02-01T09:58:00.001-08:00

New York–BCN Development has inked a deal with Brooklyn Law School to acquire 184 Joralemon Street, the school’s former residence hall, for $12 million. BCN plans to convert the 12-story, 30,000 square-foot Beaux-Arts style building into 24 two-bedroom condominiums.

The residences will feature Italian-style kitchens, high ceilings, hardwood floors, and washers and dryers, according to BCN. Most of the residences have views of the East River, lower Manhattan or the Verrazano Bridge. BCN also plans to renovate the ornate lobby with a capital improvement campaign of about $2 million and will do renovation work on the units as well.

BCN believes the fact that the building will be condos, as opposed to part of a co-op structure, will be a strong draw for buyers in the Brooklyn Heights neighborhood where the property is located. The company is looking to sell to young professionals and families who are priced out of Manhattan and looking for larger homes elsewhere.

“Brooklyn Heights does not have many new condominium projects coming online, so we know people will be interested to buy from us because it is a desirable street and they can avoid the issues that sometimes arise when dealing with a co-op board,” Craig Nassi, CEO of BCN Development, tells MHN.

“With co-ops, the actual sale transaction can take a long time, dragging on because the buyer needs to go through a lengthy interview process with the co-op board,” Nassi continues. “Personal items come up and most boards require an in-depth look into the buyer’s financials. It feels like an invasion of privacy for some buyers, and many people would prefer to bypass this process, especially when there’s always the chance that the sale can be terminated due to something the board doesn’t approve.”

In late December, Manhattan-based United American Land filed suit against the law school, claiming that the school had promised to sell United American Land the property for $9 million. That case, which did not name BCN, is still pending, and it’s unclear whether it will have an impact on BCN’s plans.

Brooklyn Law dorm to become condominium

2011-01-10T16:11:00.001-08:00

Brooklyn Law School has signed a contract to sell its residence hall at 184 Joralemon Street in Brooklyn Heights for $12 million, the Wall Street Journal reported. The buyer of the 12-story, 30,000-square-foot Beaux arts building is BCN Development, which plans to convert the dorm -- currently occupied by graduate students -- into 24 two-bedroom condos. BCN also plans to invest $3 million to $4 million dollars to renovate the lobby and each of the apartments over the summer, using an Italian design. The residence hall is located within the boundaries of a proposed historic district currently under consideration by the city's Landmarks Preservation Commission. Joan Wexler, president of Brooklyn Law School, had voiced opposition to the plan to include the building in the historic, saying it would lead to rent hikes for students. But the upgrades will take place after school finishes and students have moved out, said Craig Nassi, CEO of BCN. Prices on the condos -- including two 2,000-square-foot penthouses with views of the East River -- will start at $1 million

Brooklyn Law Dorm Is Condo Bound

2011-01-10T16:10:00.000-08:00

Brooklyn Law School has signed a contract to sell a residence hall in Brooklyn Heights for $12 million, according to people familiar with the deal.

The law school entered into an agreement with city-based BCN Development to hand over its 12-story Beaux Arts building at 184 Joralemon St. BCN Development intends to convert the residence hall into 24 two-bedroom condos.

The developer also plans to invest $3 million to $4 million dollars to renovate the lobby and each of the apartments.

"We are seeking to consolidate our housing and are looking for another project," said Joan G. Wexler, president of Brooklyn Law School, in a statement regarding the sale of the residence hall, which is currently occupied by graduate students.

Once the residence hall is converted into condominiums, brokers expect the units to sell quickly in a neighborhood where co-ops are much more common.

The 30,000-square-foot residence hall was built near the turn of the century. It has been used as student housing for the Brooklyn Law School for more than 30 years. The structure was a commercial building prior to that.

The residence hall is located within the boundaries of a proposed historic district currently under consideration by the city's Landmarks Preservation Commission. The proposed district would include many of the skyscrapers in downtown Brooklyn.

Ms. Wexler had voiced opposition to the plan to include 184 Joralemon St. in the historic district during a landmarks commission hearing in December, saying it would lead to rent hikes for student residents.

Now BCN Development plans on renovating the residence hall using an Italian-contemporary design. Those upgrades are scheduled to take place over the summer after school finishes and students have moved out, said Craig Nassi, chief executive of BCN.

While the units aren't in terrible shape, the student-occupied apartments are far from luxurious in their current conditions, Mr. Nassi said.

"Tired is the right word," he said.

There are two units per floor with most measuring at about 1,000 square feet. On the top floor, the two penthouses are about 2,000 square feet and feature 15-foot windows with views of the East River. Prices on the condos will start at $750,000.

The number of condos the building is slated to bring onto the market is rare for Brooklyn Heights, said Greg Williamson of the Williamson Group, a unit of real-estate company Prudential Douglas Elliman.

Many prospective buyers in Brooklyn Heights would be attracted to properties that would allow them to avoid applying with co-op boards, he said.

"Just the fact that these are condominiums, it will be very desirable," said Mr. Williamson, who wasn't involved with the sale of the residence hall.

Mr. Williamson predicts that the condos would be sold within eight to 12 months once they hit the market.

"Most people buying there are ex-Manhattanites that are priced out of the city," he said of the area.

Write to Joseph De Avila at joseph.deavila@wsj.com

Corrections & Amplifications:
Prices for condos planned for a Brooklyn Law School residence hall being sold to a developer will start at $750,000. An earlier version of this article incorrectly said the prices would start at $1 million.

Building Through the Downturn: BCN Chief on Great Recession Construction, Financing Beyond Mezz and More

2010-12-02T17:53:00.000-08:00

When Craig Nassi founded BCN Development in 1994, the city's landscape was a whole lot different. At his peak, the chief executive and his group were investing in $300 million projects, including 315 Park Avenue South, where Credit Suisse is headquartered. As a reaction to the downturn, BCN adjusted its ambitions by focusing on smaller projects. As a result, the group is among a shrunken pool of firms currently developing right now. Mr. Nassi, 41, talked about his strategy, making changes in a tough environment and the advice the part-time professor gives students.

The Commercial Observer: BCN Development is among a small pool of developers that are actually developing in New York City. How are you making that happen?

Mr. Nassi: Well, we've been around for about 16 years, and in 16 years you see how trends consistently move; and the directions they've moved in today, for developers, is that you need to find deals that have an upside that can be nontraditionally financed. And what I mean by that is, it used to be where you could go to a bank if you found a deal, and you say: 'We've got a great deal. And we want you to finance 85 percent of it, and we'll put the rest in.' Or the rest will be mezzanine above that, with a small piece of equity.

Today it's different. Today, what we're doing is we're finding deals that we can go to our investment groups and investors with and say, 'Hey, look, we found a deal that's manageable to do with all equity, and we can get it done in a 12-month period, and be in and out of there, make some money and move on.' So the days of big, huge mega-deals that take five years to do ... Those days are over.

It seems counterintuitive to be building in this economic climate.

Not at all, because in New York City—specifically in Manhattan neighborhoods—it's not a matter of the market being bad or good. The market is actually good in New York. We're still seeing $2,000-, $3,000- and $4,000-a-square-foot sales in New York City for residential. We're seeing $700- and $800-square-foot sales on large office buildings in Manhattan. We're seeing retail rents at $300 and $400 and $500 a square foot. So New York City is really not in a recession. In fact, it's just getting stronger and stronger every day we move through the national recession, in that our inventory is getting absorbed daily and there's slowly but surely becoming a lack of product types.

Are you seeing some of your peers in the development world following suit?

There is a lot of niche development happening. If you drive around any given neighborhood, you'll see that people are doing six- and seven-story buildings. They're doing renovations. They're doing stuff that's not as complicated and crazy as the stuff you saw happening four or five years ago.

BCN Development's strategy has been focused on smaller projects. Was that the idea from the outset, or did you downsize in the past several years?

We went from doing 100 and 200 and 300 million dollar deals to now doing niche developments that are from $3 million to $40 million.

Did you shift your building strategy right at the downturn?

Yeah, the last two or three years we've been doing this. We found our way into it because we were at a roadblock for finding investors and financing for bigger projects. Bigger projects just aren't happening.

How are you financing these projects? You mentioned investment banks earlier.

Mezzanine is a word that has almost vanished. It was a relatively new word in the dictionary about 15 years ago, and came about and was very hot for a while, and now it's a word you really haven't heard in many peoples' vocabulary in three years.

Right now a lot of people are taking advantage of refinancing. Are you?

Yes, we have. We've refinanced some things and we've taken advantage of the extremely low interest rates. But, again, banks are very cautious and they're not fast to refinance and get deals done the way they used to. So a refinance today could take four to five times as long as it used to.

You're about ready to begin construction on an additional 43,000 square feet at an existing building at 45 East 33rd Street in Manhattan. What's the status on that project?

That's a project that we felt the market right now wants—smaller units at a price point under $1,000 a square foot. And that kind of thing is financeable today. So when we're selling these things to people, people have a true vehicle to finance these things through. Construction begins in the middle of next year.

That's a residential condo project. Is that your focus now, or are commercial projects equally as lucrative right now in this economic climate?

We're not really looking at commercial as much. There's a lot more commercial office space in Manhattan that could be considered maybe a little like a flood. We feel a little more comfortable with niche residential than we do commercial.

Before the downturn, were you focused more on commercial development?

Well, in 2006, we bought 315 Park Avenue South, and that's a 330,000-square-foot building that is Credit Suisse's United States headquarters. We bought it because it had great tenancy, but we specifically bought it because there was great financing for it. That, again, was a time when they were doing amazingly leveraged financing on AAA assets like this.

What is the status on the building? Is it all leased up?

The status is that it's all leased up. It's 100 percent occupied through 2017. And we're very excited about the building and the possibilities in 2017, and maybe turning it into a world-class condominium asset or a hotel. It's a great neighborhood for that.

What, right now, would be an ideal commercial opportunity for you?

I think an ideal commercial investment is in the Rockefeller Center core. I think the Park Avenue core, from the Pan Am building to 57th Street, is great commercial. I think also the core of midtown south is really coming back strong as well, which is where our building is at right now. I think people really like that area right now.

You're a part-time professor at N.Y.U., teaching a course called Real Estate Development. What advice are you giving students right now in this climate?

I always tell any young, aspiring real estate person that you have to look for assets out there that have value-add to them. Which means, buy something vacant where you're willing and able to put some sweat equity into it by repositioning it and getting brand-new tenants in there who will pay the price—market or even above-market—for having great finishes, new finishes, new lobbies, new entries, cosmetic jobs that make the asset look nice. These are the kinds of things they should do.

BCN Development reported planning to create 108 condo apartments at 45 East 33rd St.

2010-09-20T18:40:00.000-07:00

BCN Development of which Craig Nassi is a principal has a contract to buy the six-story mid-block building at 45 East 33rd Street where he plans to add about 12 floors and create a 108-unit residential condominium building, according to an article today by Adam Pincus at therealdeal.com

The article said that "several sources put the price at approximately $20 million," adding that "the building would be delivered vacant."

According to the article, "the property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC, which included the builder of the Toren condominium in Brooklyn, Donald Capoccia, failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million."

"Cappocia's group," the article continued, "also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit."

The building is owned by the Forward Association and Workmen's Circle/Arbeter Ring.

Mr. Nassi began developing real estate in Colorado, "but in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South," the article said, adding that "the office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show."

BCN Development reported planning to create 108 condo apartments at 45 East 33rd St.

2010-09-20T18:37:00.000-07:00

Old Forward newspaper building selling for $20M, to become condo

2010-09-11T18:31:00.000-07:00

The long-time home of the Jewish Daily Forward newspaper and a Jewish social service agency is in contract with developer Craig Nassi's BCN Development, which plans to build 108 condominium units at the site near the Empire State Building.

The developer has inked a deal to buy the six-story Workmen's Circle building, at 45 East 33rd Street, between Park and Madison avenues, Nassi told The Real Deal. Several sources put the price at approximately $20 million. The building would be delivered vacant.

The property was tied up in litigation for nearly a year after a development entity called Empire 33rd LLC -- which included the builder of the Toren condominium in Brooklyn, Donald Capoccia -- failed to conclude the purchase of the building after signing a contract in March 2007 to buy it for $34.9 million.

The approximately 42,000-square-foot building, owned by two non-profit organizations the Forward Association and Workmen's Circle/Arbeter Ring, comes with additional development rights to build more than 83,000 square feet, PropertyShark.com shows. The conversion comes on the heels of the condo conversion of the old Jewish Daily Forward newspaper building at 175 East Broadway.

Through his BCN Development, CEO Nassi began with projects in Colorado. But in recent years he turned his attention to Manhattan, where in 2007 he paid $265 million for 315 Park Avenue South. The office building was purchased at the height of the market, and now the $219 million loan is on a watchlist along with many Manhattan commercial buildings, but is performing in part because the building is 85 percent leased by lender Credit Suisse until 2017, securitized loan documents show.

The plans for the Workmen's Circle building involve constructing on top of the existing six-story structure to create an 18-story building, the developer said. Nassi paid a hefty nearly 20 percent down payment for the building after signing the contract in May. The closing is scheduled for October with construction set to start early next year, he said.

He expects to charge $900 per foot to $1,100 per foot for the apartments, and plans to finish construction in about 18 months. He has not selected a marketing and sales company, but said he anticipates starting the process in about a month.

Nassi said he was one of four bidders for 45 East 33rd Street. "We were fortunate to win," he said.

Empire 33rd the prior developer who sought to buy the building, went into contract in March 2007 to buy the property for $34.9 million, a lawsuit filed in New York State Supreme Court in July 2009 shows.

Cappocia's group also paid $13 million for neighboring properties and air rights to build its project, where it planned to build a hotel, court papers indicate. In April, a judge ruled against Empire 33rd, and it lost its effort to win back its $5.3 million deposit.

The Forward moved into a space at 125 Maiden Lane in the Financial District after buying a commercial condominium there in July 2008. The Workmen's Circle still occupies the building, and declined to comment. Capoccia did not immediately respond to a request for comment.

Leucadia holding over at 315 Park Ave. South

2010-03-01T19:34:00.001-08:00

BCN Development, the award-winning developer of high-end, mixed-use, luxury properties, announced that it has secured lease commitments from the holding company, Leucadia National Corporation, for over 32,000 s/f of office space through 2017 at its New York City flagship property, 315 Park Avenue South.

The deal is valued close to $25,000,000.

Craig Nassi, CEO of BCN Development, welcomed the news. "It is a pleasure to be able to continue our relationship with one of New York City's fastest-growing companies," Nassi said.

Leucadia National Corporation has been ranked at number 14 on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of 119.1%

"I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business."

The 340,000 s/f 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.

BCN just signed a lease with Phoenix Partners Group for more than 16,400 s/f in the building a lease valued at approximately $13 million.

"Leucadia holding over at 315 Park Ave. South". Real Estate Weekly.

Craig Nassi BCN Development Bloomberg TV

2010-01-25T06:08:00.000-08:00

Craig Nassi on Fox News

2010-01-25T05:23:00.000-08:00

Team Continuum 2007 ING New York City Marathon

2008-01-15T04:04:00.000-08:00

ING New York City Marathon is renowned for its enthusiastic and extremely plentiful crowds of spectators. Despite the enormousness of the city, the first Sunday of November is always ‘Marathon Sunday’, and 2 million New Yorkers leave their Sunday doings and head out to cheer the runners, listen to the 100 live bands and suck in the ebullient atmosphere. The hailing onlookers line the whole course from the start on Staten Island, over Verazano-Narrows Bridge to the sound of Frank Sinatra singing ‘New York, New York’ and into Brooklyn and Queens. Then the route goes over Queensboro Bridge for a roundtrip on Manhattan and a short stop in the Bronx before reaching the finish outside the famous restaurant Tavern on the Green in Central Park. Along the way, runners will witness the cultural diversity of New York’s neighbourhoods and pass five more or less famous New York bridges. The marathon course makes up a great sightseeing tour and runs through parts of the city that many tourists would otherwise never have seen. The bridges on the route provide superb views but also add some inclines to the course. The Verazano marks the highest point with just over 80 metres/250 feet, but this bridge is right at the beginning, when energy is still intact and the field is probably too crowded to get some speed going, anyway. Queensboro Bridge after 24 kilometres is also known to be pulling some teeth, as well as the final and rather hilly 4-5 km in Central Park.

The next New York City Marathon will take place on Sunday November 2, 2008.

News: 315 Park Avenue South

2007-12-15T09:37:00.000-08:00

BCN Development, an award-winning, leading developer of high-end, mixed-use, luxury properties, announced today that it has secured lease commitments from Leucadia National Corporation (Ticker: LUK) for over 32,000 square feet of office space through 2017 at its New York City flagship property, 315 Park Avenue South. The deal is valued close to $25,000,000.

Craig Nassi, CEO of BCN Development, welcomed the news. “It is a pleasure to be able to continue our relationship with one of New York City’s fastest-growing companies,” Mr. Nassi said, citing an article from the November 19, 2007 issue of Crain’s New York Business that ranked Leucadia National Corporation at number 14, on the strength of a 2006 net income of $186 million on revenue of $827.8 million and a share price appreciation of +119.1%. “I am delighted that Leucadia recognizes the desirability of 315 Park Avenue South as the location to continue to grow their business.”

The 340,000-sf 315 Park Ave. is also headquarters to Credit Suisse. The property has a just renovated 50-year-old lobby with a $1-million detailed finish.

315 Park Avenue South

Craig Nassi Interiors

2007-11-11T06:08:00.000-08:00

See more at BCN Develpment image gallery

2007-07-26T02:02:00.000-07:00

Dear Friends and Family,

"In charity there is no excess" ~ Sir Frances Bacon.

This is a motto by which I have chosen to live my life. It is with this in mind, that I have registered to run the New York City marathon for charity. The charity that spoke to me most is Team Continuum. Team Continuum is a non-profit organization dedicated to taking immediate care of anyone involved in fighting cancer. They give cancer patients access to the everyday cure. They fill in the physical and emotional gaps of support so cancer patients can have the strength to focus on their treatment. Currently, Team Continuum has raised and distributed more than $3.5 m.
We have all known people, near and far, who have suffered from cancer. We have all been personally affected in one way or another by cancer. We have seen the emotional toll cancer takes on the patient, friends and families. I believe cancer is the most serious illness facing us today; it does not discriminate and it does not relent.
Please sponsor me by donating to this amazing nonprofit. Donations are tax deductible and can be made on my page. Every dollar goes a long way in making a difference in someone’s life.

Thank you for your support,
Craig Nassi

Please click here to donate

Bcn development purchases 315 park ave. south a 330,000 s/f building for $265 million

2007-07-19T02:44:00.000-07:00

MANHATTAN, NY: In March, Craig Nassi’s firm BCN Development completed
plans to make its first entrance into Manhattan, agreeing to purchase 315 Park Ave. South, a 21-story, 330,000 s/f office building located in midtown located at the south east corner of 24th St. and Park Ave. South. The purchase was an off-market transaction, where BCN was represented by Venture Capital Properties LLC’s threesome Ebi Khalili and Josh & Joseph Rahmani and Vladimir Kovalenko of Continental Realty from the partnership representing the seller. The purchase price was $265 million.

Whole article, PDF

CPN Magazine: Park Avenue Buy Closed, BCN Eyes More Manhattan Office Property

2007-06-15T09:08:00.000-07:00

Now that his firm's acquisition of 315 Park Avenue South has officially closed, BCN Development CEO Craig Nassi says that his firm is planning to further expand its holdings in the thriving Manhattan office market.

"The New York City office market is absolutely phenomenal," Nassi told CPN this morning. "It's better than anywhere in the country, and we're looking for the best markets to be in."

In March, Nassi's Denver-based firm announced plans to make its first major foray into Manhattan, agreeing to purchase 315 Park Avenue South--a 21-story, 333,000-square-foot office building (pictured) located in Midtown--in an off-market transaction, for a purchase price reportedly somewhere north of $265 million. Credit Suisse First Boston is the property's major tenant, occupying some 82 percent of the building's space, and Nassi identified the banking firm's tenancy as a major asset, characterizing Credit Suisse's lease as "good as gold."

With the purchase of 315 Park now closed, BCN will now turn its attention to making other investments in Manhattan. The firm currently has four other Gotham properties under contract for acquisition. "There's such a tightness in the market right now that any good square footage in good buildings is absorbed as soon as it's put on the market," Nassi said. "So that makes for very profitable office product."

And with little space available for new construction, Nassi said he expects the value of existing office stock to continue to climb. "Under our calculations, we expect to see a 12 to 15 percent annual rise in rents in Midtown," he noted, adding that BCN was looking to acquire space all over the borough, not just in that submarket. "We're looking for office deals throughout Manhattan. One of the deals we have under contract is for approximately 1 million square feet of office near Wall Street," he said, noting that as the Midtown market continues to tighten, tenants will increasingly be pushed to look for space in other Manhattan submarkets.

By Adam Perrotta, CPN News Writer (link)

315 Park Avenue South, New York, New York

2007-04-22T12:21:00.000-07:00

New York Observer: Macklowes Mull East 57th Street Monster Tower

2007-04-15T11:00:00.000-07:00

And he said he would place an office for his company, BCN Development, inside this purchase. And what to make of his dedication to Manhattan?

BCN Development Buys 315 Park Ave.

2007-03-15T22:14:00.000-07:00

NEW YORK CITY-Denver-based BCN Development has purchased 315 Park Ave. South in an off-market transaction. An undisclosed partnership quietly put the 333,000-sf Midtown building on the market and was being heavily pursued by a number of companies, according to GlobeSt.com sources.

Credit Suisse First Boston is the building’s major tenant, holding a long-term lease on about 82% of the fully occupied building. The building's location and quality tenant was what attracted BCN to the property, according to CEO Craig Nassi. “[It] may be the best tenant in the city,” he tells GlobeSt.com.

The 21-story building sold as a cap rate in the 5% range, according to Nassi. He declined to name the purchase price since the deal has not yet closed. It is expect to close in the next two weeks.

In December, Vornado purchased 350 Park Ave. for $542 million, as reported by GlobeSt.com. Although that 538,000-sf class A office building is located about 30 blocks from BCN’s newest acquisition. In January, 2 Park Ave. sold for $519 million. The one-million-sf building is located 10 blocks from 315 Park Ave. South and was purchased by Morgan Stanley Real Estate’s Prime Property Fund.

Additionally, BCN is looking to acquire another two million sf of office, retail, hotel and residential, developments or conversions. Nassi tells GlobeSt.com that his firm currently has 865,000 sf under contract in the city that should close in the next 30 to 60 days.

Article by Katie Hinderer of Globest.com

Craig Nassi - Getting it right by P. Reston Manfredi

2007-03-02T14:27:00.000-08:00

In Ayn Rand’s The Fountainhead, Howard Roarke, a brilliant architect, watches as developers destroy his outstanding design by adding balconies. He also falls victim to a bunch of media hacks and critics who go on a verbal rampage to destroy him. So he blows up his own building in protest.

Craig Nassi, a dynamic, young developer, picked Daniel Libeskind to design the Aura in Sacramento, California, his most daring and forward-looking project to date. It’s a mixed-use condominium tower that revivifies the state capital. Libeskind—his was the inspired design for the Freedom Tower to replace the World Trade Center—knows the Roarke feeling and has no such qualms when working on his new project for Nassi. An unusually sophisticated yet simple design, sheer elegance is a good way to describe it.

Nassi’s Denver-based company, BCN Development, with a combined real estate portfolio valued at more than $500 million, is enjoying its bar mitzvah year by celebrating Libeskind’s Aura. Rising over 400 feet above the city center, it is 38 stories of luxurious residences that will have state-of-the-art technology and cutting-edge contemporary style. The Aura’s 265 apartments range in price from $386,000 to $1.3 million. The exterior of the building is a bluish-gray glass that covers 100% of the skin. Every home will have glass railed terraces with panoramic views of the wide sky and the horizons of Sacramento. Libeskind calls it “a sculpture that changes with light and the season.”
The stunning illustrations feature a building with trademark Libeskind twists—those textured surfaces that cause you to pause and try to figure out exactly how his buildings make their statements. From the hand-rendered illustrations, it is difficult to figure out how the building can be so translucent, yet so three-dimensional. And then you realize, it’s all about the balconies.

Nassi, a native Brooklynite, is in New York to present the project to a number of high-powered potential investors. He doesn’t pick a conference room or some mundane and tired place, instead, he picks New York’s newest hot spot, Buddakan—the most talked about restaurant in town. Tucked into the old Nabisco factory on 9th Avenue, it has cachet and grace, and the setting suits the developer and project perfectly.

In the faux library, its four walls lined in beige leather tooled with gold leaf and a hint of Chinese red—lines, square edges and clean lights, softened by the sensuous flow of Chinese grand graphics on the concrete wall—Nassi presents the Aura to New York.

When Nassi appears in the library with a PR posse, it is difficult to know what to expect, but almost instantly you realize he is not one of those all-about-me types. He was raised by his single mom, the Israeli-born daughter of a Polish father who just barely escaped the Holocaust in 1938. The rest of the family was wiped out.

When Nassi, 37, was 12, his mother remarried and the new family moved to Denver, where he attended high school, Colorado State University, and graduate school at the University of Northern Colorado, earning his masters degree in education. He always wanted to be a schoolteacher and taught social studies and coached football and basketball for three years in the Cherry Creek school system. Annual salary: $28,000 for a 75-hour week.

Becoming a schoolteacher shows character that most people don’t have. But as a career choice for an ambitious young man, it seemed hardly practical. Why did he make that decision?
“People who are motivated and inspired by teachers want to be teachers. In high school I had a few good teachers and coaches in football and track. I thought they were very noble people, working for $30,000 a year, to dedicate their lives to kids. It’s not a job where you come in at 10 and leave at 5. It’s a full-time job. But, for me, who went in every year wanting to make a difference and found myself rewriting and rearranging lesson plans from the year before, it became boring and was no longer a challenge. “When that final June rolled around, I couldn’t do it for another year and quit. I had no job, my mom said I was crazy, but she understood. Then friends suggested I get a real estate license, which introduced me to the field.“I sold for a couple of months and didn’t like that, so I got into construction and became a general contractor. I learned the sticks and bricks side of the business, building away.”He laughs when asked if he built one-family suburban Spanish villas and ranches. “Yes that kind of stuff. You get to understand that it really is all about the sheetrock and the taping, about the tiny details. That’s the essence of this business. If you don’t have a feel for that, you shouldn’t be in it because you will never figure out how to get things done under budget. It’s part of the art of this business.
“Donald Trump is very successful because he worked and lived with his father, a general contractor who understood you can use this screw for half a penny, or this screw for three quarters of a penny, and you will be using 2,000,000 screws over the next six months—so think about it. You have to know value. You can’t just jump into this at the top end and think you’re going to make it work. When we designed this building, we had to make sure it worked because if it didn’t, we wouldn’t build it.”
His first year in the business he made $200,000. “I realized that teaching is like slave labor, and because it is there is something drastically wrong with society. For me now, all of a sudden I was enjoying my life.”
When he was 25, he also went into the antiques business in Denver at Metropolitan Antiques Gallery. “I’ve always had a love of geography and history and art,” he told one local reporter in Denver, and often travels the world looking for the right object d’art to make the correct statement. “I just had an idea of mixing antiques with development.” He once bought an antique 20-foot-tall embassy gate in Argentina that he used in one of his projects.
His tastes, while eclectic, tend toward the European. It might be because of his Polish genes. When told that there were more than a few Polish Holocaust survivors who were real estate developers that started out as he did, Nassi laughed.
“Maybe that’s why I have an admiration for Daniel so much—for his Polish background. He was one of the first Jewish babies born in Poland after the Holocaust. He’s a wonderful guy and it was fun going from single-family homes to building this kind of building and working with someone incredibly exciting and talented like him.”
The feelings are mutual, says Libeskind. “It’s a pleasure to be working with someone who has Craig’s great vision, who saw something beyond square footage in the center of such a beautiful city. He wanted to contribute something architecturally. The structure is iconic, and it celebrates the city, giving the residents an art experience that will lift living into something that goes beyond the functional.”

Nassi grew up in the Denver Jewish community of 50,000. He was bar mitzvahed in Israel, is a strong contributor to the Jewish National Fund, and goes to Israel at least once or twice a year. Though not observant, he’s a proud cultural Jew and not ashamed to be the first to say so, especially if challenged.
As part of his social involvement, Nassi sits on the board of a number of organizations and social agencies that are part of his local community and seeks to help make it a better place for everyone to live in. Beyond that, he has come upon an idea he’d like to pursue, if the government can be convinced to come on board.
As a former teacher, he feels that society has an excellent opportunity to restructure the way we parent our children. There’s a 30% high school dropout rate in America, and increasingly, children across the board are less educated and caring than they used to be.
“It’s not really the schools,” he says. “It’s the parents who don’t know how to parent. When you have 20 or even 40 kids in a class and some get straight As and go to Harvard and others get to the 11th grade and drop out to sell and do drugs and hang out in nightclubs—for those who succeed it’s almost always because of the parents. It’s one of the reasons I think Judaism is such a successful culture, in that it is central in holding family together. You keep a family by spending time, loving each other, talking with each other, doing things together, following tradition. It’s not your fifth-grade teacher who yelled at you or PS 197, where they didn’t have enough books for everyone in the classroom.
“So my idea would be to offer every pregnant woman who wants the local hospital to pay for her delivery to take a four-month course in parenting (with the father, if possible), pass some tests, and take it seriously. I think that would be a great national program and that we should convince our government to do it. It would benefit everyone and make a huge difference to our children.”
The conversation is interrupted. The PR posse tells him it’s time to present the Aura to the crowd that has gathered. Daniel Libeskind says a few words, exchange greetings, scope each other out, and check out the meticulously built model.
Without ever referring to The Fountainhead, Nassi and Libeskind are told, “No one is blowing this one up.” And Nassi immediately replies, “Hats off to Daniel for the balconies.”
They both got it right.

About BCN Development Owner Craig Nassi

2007-02-05T11:27:00.000-08:00

Here's a little background about BCN Owner Craig Nassi

After graduating from CSU, Colorado, Craig Nassi went on to fulfill his lifelong dream to teach and coach youth in the public schools. He pursued his educational career for four years, while getting his Masters from UNC, Colorado. After departing from teaching he set out to challenge himself in the fast paced world of commercial real estate. Immediately leaving the classroom in 1994, he entered another one, but this time as a student. He enrolled in real estate college to gain the needed credentials for the real estate world. He achieved his real estate license and began working with a local agency. His duties were buying, selling, financing and repositioning assets.

It was a dramatic change from his previous career, but with his passion for architecture and construction Mr. Nassi caught on quickly. He immediately mastered the business and ventured into the field and began constructing single family homes. He completed a handful of homes in his first year in business, then entered into the grand world of multi-family dwellings and the commercial developments.

Quickly building and attracting a brilliant team of experienced individuals, Mr. Nassi's created BCN Development. With this ambitious group of seasoned professionals BCN set their goals on filling the void for luxury high rise living in downtown of Denver. The rest is history, by 2001-2002 he was voted by his peers as "Ernest and Young, Best Developer" for his first completed high rise, The Belvedere Tower. This asset also won the prize for development of the year.

Since then Mr. Nassi has expanded to both the east and west coasts to develop and acquire prize properties.

Today, the headquarters for BCN Development is located in New York City, Craig's home town and birth place. Here you will find him daily, working hands-on with his team to create their future developments and award winning unique structures.

Currently, Craig Nassi is also a part time professor at NYU Graduate School of Real Estate, and serves on several philanthropic boards, such as the Jewish National Fund. In his spare time Mr. Nassi is an avid runner, competitor in multiple marathons and triathlons a year, as well as enjoys skiing, spinning and yoga.

2006-08-08T07:59:00.000-07:00

Craig Nassi Aura - night render

2006-07-31T02:14:00.000-07:00

Aura Condos Grand Opening Party

Craig Nassi Luxury Properties

2006-01-18T15:28:00.000-08:00

Craig Nassi BCN Development - Luxury Properties

2006-01-18T15:26:00.000-08:00

Craig Nassi BCN Development - Luxury Properties

Welcome to Craig Nassi BCN Development Blog

2006-01-18T10:09:00.000-08:00

BCN Development creates high-end, mixed-use, luxury properties. Established in 1993 by visionary Craig Nassi, BCN is reinventing skylines by bringing creative and unique designs to everyday life. BCN transforms once ordinary and distressed urban areas into vibrant, pedestrian-friendly communities as evidenced by some of their recent majestic buildings; Belvedere Tower, The Prado, Beauvallon, and Palladio. BCN Development's vision, total client dedication, and high standards have propelled the company into one of the premier developers in the country in the last decade. Such dedication has earned BCN two prestigious Ernst and Young awards for Overall Ground Breaker of the Year in 2001 as well as the Best New Development for Belvedere Tower in 2000. BCN buildings are the future landmarks and community designations for generations to come.