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News Aug 26, 2014

Shearman & Sterling Represents Goelet in Connection with Sale of Ground Leasehold Interest of Mobil Building

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 sale by Japanese investor Hiro Real Estate, L.L.C., of its ground leasehold interest in the property to an entity controlled by New York investors David Werner and Mark Karasick, as well as the contemporaneous extension and restatement of the ground lease resulting in the ground lease having a new scheduled expiration date of December 31, 2113. Hiro Real Estate, L.L.C. had owned the ground leasehold interest in the property since 1987. In connection with the acquisition of the ground leasehold interest, the new ground tenant secured approximately $700 million in financing from Morgan Stanley.

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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