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Douglas Elliman
Through its investment in Douglas Elliman Realty, LLC, New Valley owns 50% of Douglas Elliman, LLC.
Douglas Elliman,
LLC is the largest residential real estate brokerage firm in Manhattan
with offices located throughout the City, branch offices in the New York
metropolitan area and national and international affiliates. The Company
specializes exclusively in the highest end of the sales and rental marketplaces.
At December 31, 2010, it had 20 New York City offices, approximately
2,000 real estate brokers and an impressive network of national and international
affiliates. In 2010, the Company achieved sales volume of approximately
$7.8 billion of real estate.
Prudential Douglas Elliman Real
Estate
Through its investment in Douglas Elliman Realty, LLC, New Valley owns 50% of
Prudential Douglas Elliman Real Estate.
Headquartered in Huntington, New
York, Prudential Douglas Elliman Real Estate is
the largest residential real estate brokerage company on Long Island with
40 offices. Prudential Douglas Elliman Real
Estate closed approximately 6,500 transactions in 2010, representing sales
volume of approximately $3.6 billion of real estate. Prudential Douglas Elliman serves approximately 250 communities from
Manhattan to Montauk.
DE Capital Mortgage
DE Capital Mortgage, an affiliate
of Prudential Douglas Elliman and Wells Fargo
Home Mortgage, has its main offices in New York City and on Long Island.
DE Capital Mortgage is engaged in the residential mortgage business,
primarily originating loans for acquisitions and refinancing of
properties located in New York City and Long Island.
Douglas Elliman Property
Management
Douglas Elliman
Property Management is the New York metropolitan area's largest manager
of rental, co-op and condominium housing according to a survey in the
September 2009 issue of The Real
Deal. Douglas Elliman Property Management
provides full service third-party fee management for approximately 290
properties, representing approximately 47,000 units in New York City,
Nassau County, Northern New Jersey and Westchester County. Among the
notable properties currently managed are Worldwide Plaza, London Terrace
and West Village houses in New York City. Douglas Elliman
Property Management employs approximately 340 people, of whom approximately 150 work at the company's
headquarters and the remainder at site offices in the New York
metropolitan area. In addition to the management of its clients'
properties, Douglas Elliman Property Management
provides ancillary services such as mortgage brokerage, including resale
and financing arrangements for cooperative and condominium corporations
through third-party financial institutions, leasing brokerage services,
and construction management.
St. Regis Hotel, Washington, D.C.
Through its investment in 16th and
K Holdings LLC, New Valley owned 50% of the St. Regis Hotel in
Washington, D.C. from 2005 until March 2008.
The historic 193-room luxury hotel
is one of Washington’s most significant luxury hotels due to its premier
“power location” at 16th and K Street, NW, one block from Lafayette Park
and the White House.
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. We have received approximately $18.5 million
to date in distributions from the hotel.
The Company does not anticipate receiving any additional payments
related to the sale of the tax credits related to its former interest in
St. Regis 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. The
development received a temporary certificate of occupancy in October
2009.
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.
Toy Center LLC
In June 2011, New Valley LLC
invested $5 million in the form of a non-refundable deposit for
an approximate 50% interest in Toy Center LLC. Toy Center LLC
is in process of acquiring an existing property in Manhattan, NY, which
is scheduled to be developed into luxury residential condominiums with
new retail space on the ground floor. The purchase agreement calls
for a closing by September 27, 2011.
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