Norman Sturner’s MHP Real Estate Services is scaling back significantly, downsizing and relocating after the family firm sold a majority stake in the business to Miami-based Banyan Street Capital earlier this year.
Sturner – along with his son, David, who took over day-to-day operations of the company earlier this year – and chief financial officer Brett Goldman are now under four-year management contracts with the new Banyan joint venture, a source close to the partnership told The Real Deal.
And MHP – founded in 1971 as Murray Hill Properties
– is moving its offices this week to 530 Fifth Avenue, departing the Stahl Organization’s 277 Park Avenue where it had been a tenant since 2009.
At 530 Fifth, MHP signed a 3.5-year sublease with Altice Media Solutions. Its new space will span about 13,000 square feet, down from 22,000 square feet at 277 Park. A source familiar with the company said MHP plans to slim down from about 35 office leasing brokers to 22.
In April, MHP announced that it sold a 60 percent stake in the company to Banyan Street in a joint venture that valued the combined business at more than $3 billion, with a property portfolio of over 15 million square feet in the Eastern region of the U.S. In New York, MHP owns 850 Third Avenue along with HNA Group, which it has been trying to sell . It also owns 180 Maiden Lane with Clarion Partners.
Sources familiar with the deal said MHP was looking for a deep-pocketed partner to help it make new acquisitions, while Banyan Street wanted to crack into the five boroughs.
Since the JV, MHP brokerHoward Rosenblum recently left to join Advisors Commercial Real Estate (formerly known as CBC Advisors), his new firm announced last week. And earlier this year, MHP “cut ties” with David Green, the company’s longtime head of brokerage.
At the time, Norman Sturner said the company needed “a more aggressive approach” and that he would be “beating the shit out of my brokers.”
Mark Maurer contributed reporting.