Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 103, no. 17: Articles]: April 26, 1919

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April 26, 191V RECORD AND GUIDE 545 Real Estate Review for the Current Week Purchase of Empire Building by United Stales Steel Corporation Is Feature of the Business WITH the $5,000,000 sale of the Empire Building to the United States Steel Corporation for use as its per¬ manent New York home as a leading transaction, with a well maintained demand for apartment house proper¬ ties in various parts of the city, with a steadily increasing number of deals involving private houses, and with instances steadily growing in number of deals involving cash outlays, and with unmistakable signs indicating the return of the small buyer into the investment field, the business this week justified a high degree of optimism. For some weeks the demand has gradually been broadening to include the most desirable elements for the maintenance of a strong market; this week the general tone of the business and the character of the demand indicated that, although speculative activity continued to be prominent, there was a counter cur¬ rent of buying influence which was attracting permanent capital into this field of investment. But interest, of course, centered upon the transaction which makes New York City the permanent steel center of the v/orld. Aside from this element in the transaction, the sale was of such magnitude that it is difficult within recent years to find transactions equalling it. There have been a number of downtown office buildings sold within recent years, but there have been few involving properties of such size and value. Not since 1910 when the tall structure at 42 Broadway was bought by the New York Real Estate Security Company for a price understood to have been in the neighborhood of $7,000,000 has there been a transaction of such a size consum¬ mated. The move on the part of the United States Steel Cor¬ poration is regarded, however, as the natural consequence of the recent condition of the downtown renting market due to the shortage of space which has compelled many large cor¬ porations to purchase buildings in order to assure permanent occupancy. Under normal conditions the corporation would probably have been able to lease sufficient space to meet its requirements, but the competition for quarters in the im¬ mediate neighborhood of the financial zone has been so-keen that the only way whereby location in this district could be .'issured was through an actual purchase. There were several other interesting transactions closed, among them two deals forecasting important building op¬ erations. Tall mercantile buildings are contemplated for sites at the northeast corner of Seventh avenue and 27th street and on a large plot at 309-311 Fifth avenue, between 31st and 32d streets. Of varying interest were the acquisition of valuable upper Broadway flats by E. E. Smathers, who has been steadily adding to his New York realty holdings; the sale of the former James Stillman home to a buyer reported to be the present tenant; the purchase of valuable residential property at Park gvenue and 68th street, which is to be rebuilt, and also a num¬ ber of deals involving upper West Side and Washington Heights apartment houses. PRIVATE REALTY SALES. T"' HE total number of sales reported and not ■'- recorded in Manhattan this week was IOU as against US last week and 31) a year ago. The number of sales south of 59th street was 26 as compared with 32 last week and 14 a year ago. The number of sales north of 59th street was S3 as compared with 66 last week and 25 a year ago. From the Bronx 30 sales at private contract were reported as against 66 last week and 7 a year ago. Statistical tables, indicating the number of recofded instruments, will be found on page 559 of this issue. U. S. Steel Buys Empire Building. In one of tho largest private sales ever nego¬ tiated in New York City, the United States Steel Co. has purchased for its own use, the twenty-one story Empire Building, at Broadway and Rector street, through to Church street. Joseph P. Day was the broker. Judge Elbert H. Gary, chairman of the Board of Directors and Finance Committee, acted for the corpora¬ tion. Clarence H. Kelsey, president of the Title Guarantee & Trust Co.. and Frederick Potter, as trustees, represented the owners, the O. B. Potter Trust. The property has been held at $5,000,000 and is stated to have brought close to that figure. The U. S. Steel Corpora¬ tion, which will take title to the property in the name of a subsidiary, will pay all cash for its permanent home in New York. The cor¬ poration now occupies as a tenant a large portion of the building. Judge Gary stated: "Our purchase of the Empire Building was influenced by the excel¬ lence of its location, by the character of the building, by the recent very great improve¬ ment and concentration of transit facilities In this hub of the financial district. We deemed it wise to procure permanent quarters in this city." Mr. Kelsey said : "This purchase in addition to being of great personal interest and one of the largest with which I have had the honor ever to have been connected, is big with po¬ tentialities. It means that the city of New York is now to be the permanent steel centre of the world, for the seat of any great industry is the place from which it is financed. The city of New York is to be congratulated." Mr. Day said: "This transaction was a source of great satisfaction to us personally, but it was of far greater importance to the city of New York and its vast business interests because of its probable effect upon the minds of prominent men. many of whom only need the definite leadership and action of some cap¬ tain of industry to decide for them the question of loi-'ating their permanent headquarters here or elsewhere." The Empire Building occupies a plot of ground fronting 78 feet on Broadway at the southwest corner of Rector street, 223 feet on Rector street, and 50 feet on Church street, and overlooking Trinity Church on the north. The total area of the plot is about 14,000 square feet. When the building was erected, in 1897- 8, its foundation, which consists of 23 steel caissons, were carried down 50 or 60 feet to bed rock. Architecturally, the building is a fusion of those pre-existing styles that were logically related, the main expression being early Italian renaissance with features that are Graeco-Roman. Prior to the erection of the Empire Building, its site was occupied by a six-story brownstone office structure—built in 18i59—which, however, despite its later day shabbinesp, housed many prominent individuals and firms. One of its most prominent tenants was the late Russell Sage, whose office in the building once was invaded by a fanatic, who, in an attempt upon the life of Mr. Sage by "bombing," succeeded only in seriously injuring one of his clerks. The new building was erected by Marc Eid¬ litz & Son, from plans by Kimball & Thomp¬ son. Never before had so tall a building been suggested. The closest approach to it was the Manhattan Life huilding designed by the same architects, which was 16 stories in height. When this was completed in one year's time, it was believed that the height limit had been reached. Just prior to 1892, a twelve story building erected in twelve months time, was widely heralded as the "last word" in rapid construction work. Five years later, on June 1, 1897, the twenty-one story Empire building was begun. The exterior of the building was fully completed on April 19, 1898. The build¬ ing was open to occupancy within one year after the removal of the old structure. Title to the site now occupied by the Em¬ pire building was of dual origin. The first holders of record being Trinity Church and the German Lutheran Church. The later Church occupied only a part of its holdings, the cor¬ ner of Broadway and Rector street being occu¬ pied by an inn. This plot was sold in 1809 to "The Rector, Church Warden and Vestrymen of Grace Church," and a house of worship soon afterwards graced the site. About 1837, "from various causes the present site of the church having become unsuitable, it was deemed ex¬ pedient to sell the same and, with the proceeds, to purchase other church lands, etc." Michael Simpson, of Boston, a merchant, purchased the site in 1845. Ia was sold to the late Orlando B. Potter, father of Frederick Potter, in the year 1884. After Mr. Potter's death in Jan., 1894. the property passed into the hands of Frederick Potter and Clarence H. Kelsey, as trustees of the O. B. Potter Trust. They erected the Em¬ pire Building, the city's first "sky-scraper," which now has become the permanent exe¬ cutive headquarters of the United States Steel Corporation. Buys Broadway Corner. Elmer E. Smathers has purchased from Frank Bradley the northerly half of the block bounded by Broadway, Amsterdam avenue, 74th and 75th streets. It is known as 2128-2134 Broadway. ;i08-316 Amsterdam avenue and 200- 214 West 75th street, and has frontages of 104.6, 100 and 212 feet respectively, with a southerly dimension of 181.5 feet. The entire frontage pn 75th street and 52.4 feet on Broadway and 50 feet on Amsterdam avenue is improved with a one-story store. On the southerly 52.4 feet on Broadway is the old-time five-story fiat and a store. The remainder of the Amsterdam avenue front contains two five-story fiats and stores. Mr. Smathers took the property subject to a mort¬ gage for $500,000. Several months ago an ac¬ tion was started against Mr. Bradley and other defendants by Cecilia Einstein and others to foreclose the first mortgage on the property, which resulted in the plaintiffs securing a mort¬ gage judgment of $556,133. The property was ordered sold by the court and it was adjourned from time to time until yesterday, when it was announced from the stand of Joseph P. Day that the action had been withdrawn. .\bout eighteen months ago Mr. Smathers bought the nine-story Welles building at the northeast corner of Broadway and Beaver street, and later acquired the Thorley property at the northwest corner of Fifth avenue and 46th street. Stillman Home Sold. The large five-story dwelling, with two-story extension, at 9 East 72d street, for many years the home of the late James Stillman, financier, and valued at about $500,000, has been sold to a client of the office of the Douglas Robinson, Charles S. Brown Co. While the brokers would not disclose the identity of the new owner, it was generally reported in Fifth avenue realty circles that John Sanford, who has been occu¬ pying the house under lease, is the purchaser. The property was bought by Mr. Stillman In 1001. It stands on a plot fronting 59.4 feet and having a depth of 102.2 feet, located mid¬ way between Fifth and Madison avenues. The city assesses the property at $350,000 for taxa¬ tion purposes. Recently the Stillman heirs sold the plot at the north corner of Fifth avenue and 72d street, with privileges of 62 and 175 feet respectively, to a syndicate headed by Fred F. French, which will improve it with a tall apartment house. This is separated from the Stillman residence by a 28-foot house. Lenox Hill Residence Project. Douglas L. Elliman & Co. have made two interesting sales which will result In a hand¬ some addition to the high-class residential col¬ ony on Park avenue at the crest of Lenox HIU.