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News Aug 08, 2014

Shearman & Sterling Represents Goelet in Creation of Leasehold Condominium and Sale of Condominium Units

Shearman & Sterling represented the Goelet family, the fee owner of the Mobil Building located at 150 E 42nd Street, New York, in connection with the conversion of the property into a leasehold condominium and the sale of seven lower office floor condominium units—consisting of about 450,000 square feet in the aggregate—to The Mount Sinai Hospital.

The conversion of the property into a leasehold condominium involved interposing certain subleases below the main ground lease of the property so as to create the 30+ year leasehold which was condominiumized. The transaction gives The Mount Sinai Hospital an approximately 26% common interest in the property. The balance of the condominium units not owned by The Mount Sinai Hospital are owned by the declarant, an entity in which both affiliates of Goelet and the ground tenant of the property have ownership interests. The declarant units essentially constitute the space leased to the building's other occupants such as Well Fargo.

The 42-story, 1.8 million square feet Mobil Building is one of New York City's most iconic buildings. It was built in the 1950s and known for its distinctive stainless steel cladding.

The Shearman & Sterling team included partners Lisa Brill (New York-Real Estate) and Chris Smith (New York-Real Estate), counsel Paul Balaam (London-Real Estate) and associate Hee Jae Park (New York-Real Estate).

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