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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 50% interest in the Sheraton Keauhou Bay Resort & Spa in Kailua-Kona, Hawaii, 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 five townhomes in New York City and a note receivable secured by 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 3,800 real estate agents. The company, which achieved sales of approximately $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 $11.8 million to New Valley’s 2008 earnings. We believe Douglas Elliman Realty is well positioned to capitalize on the thriving New York residential real estate market.
Sheraton Keauhou Bay Resort & Spa
Also in 2004, New Valley and its investment partners substantially completed the renovation of the Sheraton Keauhou Bay Resort & Spa, a four-star Hawaiian resort with 521 guest rooms (formerly the Kona Surf Hotel). New Valley has a 50 percent interest in the new resort, which reopened in the fourth quarter of 2004, and is the first hotel to open on the Big Island in nearly 10 years. We believe that this resort, which boasts amenities like a state-of-the-art convention center, the largest ballroom on the coast and a full service spa, will attract a wide array of business and leisure travelers.
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 received $16.4 million in 2008 and anticipate receiving an additional $3.4 million in various installments between 2009 and 2012.
Escena
In March 2008, a subsidiary of New Valley LLC purchased a loan secured by a substantial portion of a 450-acre approved master planned community in Palm Springs, California known as "Escena." The loan, which is currently in foreclosure, was purchased for its $20 million face value plus accrued interest and other costs of approximately $1.5 million. The borrowers are Escena-PSC, LLC and Palm Springs Classic, LLC, a joint venture of Lennar Homes of California, Inc and Empire Land, LLC. Empire Land recently filed a Chapter 11 bankruptcy petition. Lennar Homes is an affiliate of Lennar Corporation. The project consists of 867 residential lots with site and public infrastructure, an 18-hole Nicklaus Design golf course, a substantially completed clubhouse, and a seven-acre site approved for a 450-room hotel.
Townhome residences in Manhattan
In June 2008, a subsidiary of New Valley LLC purchased a preferred equity interest in Aberdeen Townhomes LLC (www.aberdeentownhomes.com) for $10 million. Aberdeen acquired five townhome residences located in Manhattan, New York, which it is in the process of rehabilitating and selling.
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 72 luxury residential units and one commercial unit.
Ladenburg Thalmann Financial Services Inc.
In November 2004, New Valley entered into a debt conversion agreement with Ladenburg Thalmann Financial Services, which resulted in the March 2005 distribution to New Valley shareholders of approximately 19.9 million shares of Ladenburg common stock through a special dividend. New Valley stockholders as of March 18, 2005 received 0.852 of a Ladenburg share for each share of New Valley. Following the distribution, New Valley continues to hold approximately 11 million shares of Ladenburg common stock (approximately 7.2 percent of the outstanding shares) and $5 million of notes receivable from Ladenburg.
On February 14, 2007, Ladenburg announced it had entered into a Debt Exchange Agreement (the “Exchange Agreement”) with New Valley where we agreed to exchange the principal amount of our $5 million of notes receivable from Ladenburg for Ladenburg common stock at an exchange price of $1.80 per share, representing the average closing price of the LTS common stock for the 30 prior trading days ending on the date of the Exchange Agreement. The promissory notes will continue to accrue interest through the closing of the debt exchange. The accrued interest on the notes, which was approximately $1.5 million at December 31, 2006, will be paid in cash at or prior to closing.
The consummation of the debt exchange is subject to approval by the Ladenburg shareholders at its annual meeting of shareholders, which LTS anticipates holding during the second quarter of 2007. Upon closing, the $5.0 million principal amount of notes will be exchanged for approximately 2,777,778 shares of Ladenburg’s common stock. As a result, New Valley’s ownership of Ladenburg’s common stock is approximately 8 percent.
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