111 Washington Street and Costas Kondylis, who was supposed to design a hotel at the site (building photo source: PropertyShark)
Pink Stone Capital, the firm run by Richard Ohebshalom, son of Empire Management’s Fred Ohebshalom, purchased the $50 million note on the development site at 111 Washington Street. The New York Post reported the loan was purchased for close to par from the New York Community Bank. The Financial District location sits across from the new W hotel and condos, and was supposed to be a hotel designed by Costas Kondylis until the financial crisis sacked the 400,000-square-foot blueprint. Craig Nassi of BCN Development, who was in charge of the hotel plans, told the Post he believes the new owners will turn it into a rental building. As The Real Deal previously reported, retail rental rates have plummeted in the area, and the newly formed Financial District Association is looking for more residential growth to lure retail tenants to Lower Manhattan. [NYP]