A Chinatown building that federal authorities targeted for illegal gambling has been sold at auction for $20 million. According to the Real Deal, Venture capital Properties beat out several other firms at an auction held yesterday.
Under a deal made last year, the federal government seized the building, located at 35-37 East Broadway. 65% of the profits will go to the Department of Homeland Security. Won & Har Realty Corporation, the former owner, will receive the rest.
In May of 2012, authorities raided the building, arresting 11 people and seizing more than $160,000. A couple of months later, the New York Times published a story in which “workers and customers” portrayed it not as a gambling den but as “a home for run-of-the-mill businesses and social clubs catering to immigrant laborers and retirees from Fujian Province in China.”
The property is 40% tenant occupied, but the leases are all short term. Venture Capital Properties owns many buildings throughout New York. See the photo tour of 35-37 East Broadway here.
