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Welcome to the New
Valley LLC website. New Valley LLC, a
Delaware limited liability company, is engaged in the real estate
business and is seeking to acquire additional real estate properties and
operating companies.
After more than 100 years of being
a publicly traded entity, New Valley became a wholly-owned subsidiary of
Vector Group Ltd. on December 13, 2005 when Vector acquired the remaining
42.3% of our common shares that it did not already own. Vector’s stock is
traded on the New York Stock Exchange under the symbol VGR.
New Valley owns a 50% interest in
Douglas Elliman Realty, LLC, which operates the
largest residential brokerage company in the New York City metropolitan
area. New Valley also holds, through its New Valley Realty Division, a 3%
interest, net of incentives, in the St. Regis Hotel in Washington, D.C.,
an interest in a condominium project in the Chelsea area of New York
City, an interest in four townhomes in New York City and a substantial
portion of a 450-acre approved master plan community in Palm Springs,
California.
Douglas Elliman Realty, LLC
Douglas Elliman Realty is the largest residential
real estate brokerage firm in the New York metropolitan area, with 59
offices and more than 3,700 real estate agents. The company, which achieved
sales of approximately $11.5 billion in 2010, $8.6 billion in 2009, $11.6
billion in 2008, $13.9 billion of real estate in 2007, $11.7 billion of
real estate in 2006 and $11.1 billion of real estate in 2005, was ranked
by a leading industry publication as the fourth largest residential
brokerage company in the United States in 2008 based on closed sales
volume. Douglas Elliman Realty contributed
$22.3 million to New Valley’s 2010 earnings. We believe Douglas Elliman Realty is well positioned to capitalize on
the thriving New York residential real estate market.
St. Regis Hotel,
Washington, D.C.
In June 2005, New Valley and its investment partners
formed 16th & K Holdings LLC, which acquired the St.
Regis Hotel, a 193 room luxury hotel in Washington,
D.C. August 2005. The St. Regis Hotel was temporary closed on August 31,
2006 for an extensive renovation. In January 2008, the hotel reopened and
in March 2008, 16th and K Holdings LLC closed on the sale of 90% of the
St. Regis Hotel. In addition to retaining a 3% interest, net of
incentives, in the St. Regis Hotel, we have received $18.8 million from
the hotel.
Escena
In March 2008, a subsidiary of New Valley purchased a loan collateralized
by a substantial portion of a 450-acre approved master planned community
in Palm Springs, California known as “Escena.”
The loan, which was in foreclosure, was purchased for its $20 million
face value plus accrued interest and other costs of approximately $1.5
million. The collateral consisted of 867 residential lots with site and
public infrastructure, an 18-hole golf course, a substantially completed
clubhouse, and a seven-acre site approved for a 450-room hotel.
In April 2009, New Valley’s
subsidiary entered into a settlement agreement with a guarantor of the
loan, which required the guarantor to satisfy its obligations under a
completion guaranty by completing improvements to the project in
settlement, among other things, of its payment guarantees.
On April 15, 2009 New Valley
completed the foreclosure process and on April 16, 2009, took title to
the collateral.
100 Eleventh Avenue,
New York, NY
A subsidiary of New Valley LLC owns 40% of New Valley Oaktree
Chelsea Eleven LLC. In September 2008, a subsidiary of New Valley
LLC purchased a 40% interest in New Valley Oaktree
Chelsea Eleven, LLC, which lent $29 million and contributed $1 million in
capital to Chelsea
Eleven LLC, which is developing a condominium project in
Manhattan, New York. (www.nouvelchelsea.com) The development,
which features a 23-story tower at the intersection of 19th Street and
West Highway, along the Hudson River in Manhattan, has been designed by
renowned French architect Jean Nouvel and
consists of 54 luxury residential units and one commercial unit.
Sesto Holdings S.r.l.
In October 2010, New Valley,
through its NV Milan LLC subsidiary, acquired a 7.2% interest in Sesto
Holdings S.r.l. for $5 million. Sesto
holds a 42% interest in an entity that has purchased approximately
322 acres in Milan, Italy. Sesto intends to develop the land as a
multi-parcel, multi-building mixed use urban regeneration project.
Fifty Third-Five
Building LLC
In 2010, New Valley, through its NV
955 LLC subsidiary, contributed $18,000 to a joint venture,
Fifty Third-Five Building LLC (“JV”), of which it owns 50%. In
2010, the JV acquired a defaulted real estate loan, collateralized by
real estate located in New York City for approximately $35.5
million. The previous lender had commenced proceedings seeking to
foreclose its mortgage. Upon acquisition of the loan, the JV succeeded to
the rights of the previous lender in the litigation. On April 27,
2011, the court granted the JV's motion for summary judgment, dismissing
certain substantive defenses raised by the borrower and the other named
parties. The borrower has challenged the validity of the assignment from
the previous lender to the JV and the litigation is ongoing.
Lofts
21 LLC
In February 2011, New Valley LLC
invested $900,000 for an approximate 12% interest in
Lofts 21 LLC. Lofts 21 LLC acquired an existing property in
Manhattan, NY, which is scheduled to be developed into
condominiums.
1107 Broadway (a/k/a Toy Center)
During 2011, New Valley invested $5.5
million for an approximate indirect 5% interest in MS/WG
1107 Broadway Holdings LLC. In September 2011, MS/WG 1107 Broadway Holdings
LLC acquired the 1107 Broadway property in Manhattan, NY. The joint
venture plans to develop the property, which was formerly part of the
International Toy Center, into luxury residential condominiums with
ground floor retail space.
Hotel Taiwana
In October 2011, New Valley
invested $2.7 million for an approximate 17.39% interest
in Hill Street Partners LLP ("Hill"). Hill purchased a 37%
interest in Hill Street SEP ("Hotel Taiwana")
which owns a hotel located in St. Barts, French
West Indies. The hotel consists of 30 suites, six pools, a restaurant. lounge and gym.
The purpose of the investment is to renovate and the sell the hotel in
its entirety or as hotel-condos.
NV SOCAL LLC
On October 28, 2011, a newly-formed
joint venture, between affiliates of New Valley and Winthrop Realty
Trust, entered into an agreement with Wells Fargo Bank to acquire a $117.9
million C-Note (the “C-Note”) for a purchase price of $96.7
million. The C-Note is the most junior tranche of a $796.0
million first mortgage loan originated in July 2007 which is
collateralized by a 31 property portfolio of office properties situated
throughout southern California, consisting of approximately 4.5 million
square feet. The C-Note bears interest at
a rate per annum of LIBOR plus 310 basis points, requires payments of
interest only prior to maturity and matures on August 9, 2012. On
November 3, 2011, New Valley invested $25.0 million for an
approximate 26% interest in the joint venture.
HFZ
East 68th Street
In December 2011, New Valley
invested $7.0 million for an approximate 18% interest
in a condominium conversion project. The building is a 12-story, 105,000
square foot residential rental building located in Manhattan, NY.
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