Jones Lang LaSalle


LEONA BUYS OUT PARTNER IN FIVE BUILDINGS

By LOIS WEISS
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May 9, 2006 -- The once combative Leona Helmsley, quietly working behind the scenes, has consolidated her power in what could be a step toward settling one of New York's major real estate family feuds.

The move could lead to Leona's longtime partners, the Malkin family, booting partner but rival real estate baron Irving Schneider out of operations at the Empire State Building and a handful of other Midtown office towers.

The Post has learned that under the deal, which closed in early May, Leona Helmsley paid as much as $100 million for Schneider's stake in five buildings. She previously sold Schneider her ownership in Helmsley-Spear, the management and leasing firm founded by her late husband Harry Helmsley.

Howard Rubenstein, speaking for Leona, said she had "acquired Irvin Schneider and his family's interests in certain properties located in Manhattan."

While sources said the deal could pave the way to dump Helmsley-Spear as managing agent or leasing agent at properties that include the Empire State Building, others said the long-running battle between the Schneiders and Leona's other partners, the Malkins, aren't over yet.
One Helmsley-Spear officer said: "This was a transaction with Irving Schneider, and did not involve Helmsley-Spear. There are other agreements in place so [removing HS] is not a fait accompli."

The affected properties include 1333, 1350 and 1400 Broadway along with 112 W. 34th St. Assets in a fifth building - not the Empire State Building - were also acquired.

Sources said she exercised a longstanding option matching an offer for Schneider's share made by Joseph Chetrit, who is converting the Toy Building on 23rd St. Leona banned patriarch Peter Malkin from husband Harry's 1997 funeral, and previously pledged some votes to Schneider, but recently she and Malkin have been working together.