Chabad of Midtown Buys Building for $40 Million

NY Post

Chabad of Midtown on 5th Ave.

A flurry of lawsuits over 509 Fifth Ave. may become moot now that sources say Rabbi Joshua Metzger has signed a contract to pay $40 million for the nondescript building partially occupied by his nonprofit Chai Foundation and Chabad Lubavitch of Midtown.

The rabbi, who blessed Knick Amar’e Stoudemire after he went to Israel to search for his Jewish roots, would be buying a 12-story, 60,000-square-foot building that is sandwiched between two larger buildings and sits mid-block between East 42nd and 43rd streets.

The New York State Supreme Court complaint filed by the Chai Foundation claims that back in 2010, Metzger discussed his desire to buy the building with real-estate investors David Werner and Amram Kass.

The complaint says Metzger provided “confidential” information about the building where Chai was occupying two floors before being cut out of its subsequent purchase.

The complaint asks for at least $30 million in damages from Werner and Kass, who have countered that they are not part of the ownership group.

The suit was also filed against the current owners, 509 Fifth Avenue Associates Owner, which includes Norman Sturner of Murray Hill Properties.

In June 2010, we told you that Werner had acted as the matchmaker between seller Joseph Moinian and Sturner, who closed on his purchase of 509 Fifth Ave. at the end of Oct. 2010 for $32 million.

Since then, sources say, Metzger has been a thorn in Sturner’s plans to create floors of office condominiums and sell them.

A suit filed in January by Sturner’s ownership group asks for over $9 million in damages against a Braintree, Mass., company, along with the Chai Foundation and Metzger.

The suit alleges the rabbi no longer has a lease, has not paid any rent and was in the process of being evicted when the Braintree firm signed a contract to buy the building last year for $39 million.

While the company deposited $1.95 million, it never closed on what was to be a December 2011 purchase. The suit alleges the rabbi interfered with the purchase and even tried to take over the contract.

When Sturner recently hired Eastern Consolidated’s Peter Hauspurg and Brian Ezratty to market the building, Metzger apparently sprang into action, putting down a deposit last Thursday before everyone left for the holiday weekend.

All the parties involved either wouldn’t comment or could not be reached.

It is possible, however, that to help pay for the purchase, the rabbi will carry through with Sturner’s original plans to sell off the retail — now occupied by Steve Madden — as well as other floors of the building.

“In the event that 509 Fifth Ave. was to be converted to office condominiums, I am working with buyers that would pay between $750 and $850 per foot for the approximately 5,000 square- foot floors,” said Michael Rudder of the Rudder Property Group, who specializes in selling office condominiums.

34 Comments

  • gevaldik

    i hope this will make up for the chillul this clown was causing for the last few months
    and perhaps someone might explain why buy a 40milion bldg when all u need is a desk

  • Great Chabad House

    I love learning Torah here and Davening Mincha five days a week. Great place!

  • to comment #21

    1 its tax free!
    2 he needs space for mincha minyan do u know a cheaper way?

  • Yasherkoach far Altz!

    I guess #2 doesn’t understand the Dynamic of Shlichus in /general & has never seen the chai foundation chabad of midtown building or space.This was something that should hsve been done long ago.I have a suggestion for them to take 1 floor & turn it into a space that can be used for lodging on Shabbos & Yomtov for guests

  • SHAMEFULL

    Josh doesn’t want any shabbos and yom tov guest.

    I was stuck in the Lincoln tunnel for several hours on a Friday afternoon when I realized that there is no way I am getting out of here before shabbos starts.

    As I see the clock ticking and no movement in traffic I began to panic, 15 minutes before shabbos I frantically phone Josh Metzger and asked him if I could put my personal belongings in the Chabad House if I get there before Shkia.

    He responded “Sorry Can’t Help You”

    This was mid summer and the temprature was in the nineties! no mention of where will you be staying or eating for shabbos.

    I was so disgusted with the response I got from him that I continued driving to Crown Heights way past shkia, out of anger and disgust with people that label themselves “Shluchim”

  • don-t judge

    Don’t Judge Josh for your sins
    Do you what was going on in his house at that moment what his day was like.
    He isn’t Hashem that told you to keep the Shabbos Holy,
    Why does everyone blame everyone else for their Sins??

  • yilmadenu rabainu josh

    what koolaid did you give you chevra to drink perhaps you can share the ingredients

  • To #6

    G-D knows his constituents, from my experience whenever someone would anyways drive after Shkia G-D doesent take care of their shabbos arangments. Every person is a shliach in the sense that G-D pulls the strings to every episode around you. If you would have more faith in G-D and less in human beings you would not be disapointed.

    I hope you did Tshuva for your anger and Chilul Shabbos.

  • interesting..

    I thought Rabbi Josh Metzger worked out of The Prime Grill. didn’t know he also had a chabad house…He always seams to be in TPG… i guess you can’t just judge a book by its cover.

  • To#6

    Forgot to offer him money to help you for Shabbos. For money he wopuld have taken care of your needs. After all it is chabad INC.

  • farginner of shluchim

    why do you think they needed more space,chacham? to takeh put up the myriad of people who call,thinking this is more than a shul and a kitchen-looking for places to stay! they dont know his family sleeps in two tiny cramped rooms and has no room for guests!! Don judge anyone until you know the facts!

    thousands-including my overseas family-have come away raving about the hospitality and caring shown by the shluchim!

    may Hashem forgive you, and help you help others as they do!

  • to #6

    this is none of my business but just a peice of advice.every friday i always see people coming out of the subway after licht bentchen.now when they come out of the subway after licht bentchen no time to take a shower or mikva plus if the subway is delayed then they can be mechalel shabbos if the subway is delayed.why can,t people arrange it to be home like an hour before shabbos.coming out of the subway an hour before shabbos has 3 advantages.

    1)go to the mikva

    2)take a shower

    3)much smaller chance of being mechalel shabbos if there is some kind of delay.

    now when you phoned rabbi metzger yes i do agree that it was very rude of him to refuse you like that but you should also give yourself additional time to get home at least an hour before licht bentchen so that you have time to shower & mikva too.so part of it is your fault too.

    i know that this is none of my business & it,s not my job to tell people what time to come home on friday but in my opinion anybody that gets home less than an hour before licht bentchen is no time to take a shower or mikva plus a chance of being mechalel shabbos.& this applies not just in the summer but in the winter too.

    cher

  • Chesky promotes Noach, Moshe promotes...

    Chesky promotes Noach, Moshe promotes Cong BS. Josh supports PG, Solo and Joey… keep the string going… Now all we need is complimentary accommodations for Moshe P in Cape Cod… Bruce?

  • sugihanna

    For those of you who rudely posted negativity– use the extra potatoes in your house to plug the ooze. Go learn a mmamer. And may you also be blessed with enough good in your own lives so that you don’t greedily eye and claw
    Others’ good fortune and well earned achievements. Chag sameach.
    – Proud Admirer of Chabad Midtown

  • David Ehrlich

    Maza Tov, Mazal Tov.

    As a jew that davens mincha daily @ Chabad Midtown, I’m so excited…Noach how’d you pull this off?

  • Richard Newmark

    How amazing would it be if Josh put a Prime Grill in the retail space downstairs?

  • David A. Harris, AJC

    Congratulations Rabbi Josh. Glad we have you as a permanent neighbor.

    David

  • sugihanna

    For those of you who rudely posted negativity– use the extra potatoes in your house to plug the toxic ooze. Go learn a mmamer, have a talk with your neshama. And may you also be blessed with enough good in your own lives so that you don’t greedily eye and claw others’ good fortune and hard-earned achievements. Chag sameach.
    – Proud Admirer of Chabad Midtown

  • Malcolm I. Hoenlein

    Rabbi Metzger, Way to go. David called me just now to pass on the good news, I’m amazed at your fundraising skills.

    Chad Sameach,

    Malcolm

  • yasher koach

    may they be gebenched with much hatzlacha and attract many yidden closer to Hashem!

  • Bruce Levi Hajithda

    Raaabi i’m soo soo happy for you and chabad…. mazazl tov, chag someac.

    send my best to rabbi noach

    BLH

  • Larry M. Bolnick

    What a blessing. May Hashem give you the strength to keep growing.

    LMB

  • SUPPORTER

    DO YOU KNOW ANYTHING ABOUT CHABAD SHLUCHIM???

    THIS CHABAD HOUSE HAS BEEN LOOKING DESPERATELY FOR A LARGER VENUE TO BE ABLE TO GROW. (ASK THE SHLUCHIM WHO MAKE THEIR CONVENTIONS AND MEETINGS THERE)…THEIR CROWDS HAVE KAH BEEN GROWING EXPONENTIALLY, AND THEY HAVE NO MORE ROOM TO PUT OUT MORE TABLES..MY WIFE AND I SPENT A SHABBOS THERE, AND – IN ADDITION TO HAVING AN INCREDIBLE.RUCHNIUSDIGE SHABBOS WITH A COSMOPOLITAN CROWD- WE SAW FIRSTHAND THEIR DESPERATE NEED TO GROW!MAY HASHEM GIVE THE RABBI KOACH TO HANDLE HIS TREMENDOUS BURDEN!!!

  • Areyah Kaltmann

    How could any Jew in the world not be happy for Rabbi Shea Metzger and his Rebbetzin ? Its not just his victory but our Rebbes.

  • disgraceful

    Why doesnt #6 reveal his identity?IS IT BECAUSE IT NEVER HAPPENED or is it because a mechallel shabos has no right to voice his shameful opinion???

  • Rabbi Shea Metzger is

    an amazing guy. With his business head, he could have been a fortune 500 easily. Instead, he has always devoted himself to the Rebbe and Chabad, and brings a Kiddush Hashem and mega-class to everything he does.

    He has an incredible heart and I personally was touched by his chessed where he went above and beyond what any shliach would do or could do for my family during a difficult time.

    Since our days together as bochurim, he had a huge vision and kochos to match – and used those kochos to push Yiddishkeit and spread the message of Chabad.

    I am delighted to hear about this purchase – he should go from strength to strength in all that he does and continue to ker a velt.

    For all you green-eyed with envy, learn to fagin a little, and you need a cheshbon nefesh to answer why a phenomenal accomplishment such as this sets you off in such a negative way.

  • calling a spade a spade

    If this project is done with doing Tzorchei Tzibbur bEmunah, then hatzlocho to you.
    If CV its for personal gain and kovod, then you’re eating from your portion of the world to come.

  • SIMCHA SHEL EMES!

    YOUR SIMCHA IS OUR SIMCHA! YIDDEN ZEYT ZUFRIDEN! THIS IS A STAR STUDDED SUCCESS! YASHER KOACH CHABAD OF MIDTOWN! HARCHOVAS HADAAS!!!