The Corinthian, an East Side residential tower that brought Spitzer’s real estate business one hundred and forty seven million dollars.
After an unsuccessful attempt to run for city comptroller, Eliot Spitzer, former New York Governor, rejoined his family real estate business. Since then, he has been working to develop the business, with a focus on building and developments. Late last year, Spitzer purchased a large development sight on West 35th Street, in the Hudson Yard for eighty eight million dollars. Earlier in 2014, he bought a neighboring property, with the intention of one day completing a large project on the combined site. Since making these investments, Spitzer has continued to be on the move, according to an article recently completed by Crain’s New York Business.
Spitzer’s most recent purchase is a deal that is now in contract for a piece of land that is nearly three acres; the property is a development site on Kent Avenue, along the south Williamsburg waterfront in Brooklyn. Spitzer purchased the piece for one hundred and sixty five million.
The property includes two large buildings that already exist on site at 420 and 430 Kent Avenue. The appeal of the property is its potential to be a development site; previous owners, the Rector Hylan Corporation received permission from the city to build more residential space on the property. However, this allowance has a deadline; ground must be broken before 2016, or the permission is revoked.
Therefore, for the property to truly hold its value to Spitzer, he must break ground on any purposed residential plans for the site prior to the 2016 deadline. In order to succeed in this quickly approaching finishing line, the article said that Spitzer plans to use some of the money collected from a recent sale; he sold a portfolio of one hundred and forty four apartments in Corinthian—an East Side residential tower. The sale brought in one hundred and forty seven million dollars to the Spitzer real estate business. By investing some of these funds in the new project on Kent Avenue, Spitzer can avoid paying capital gains taxes on the sale, via the 1031 exchange, making the proposition nothing but positive for the real estate empire.