MassMutual Financial Group affiliate Cornerstone Real Estate Advisers will provide a $556m construction loan for a 47-story office tower set to rise in Midtown Manhattan at 425 Park Avenue, developers L&L Holding Company and GreenOak Real Estate announced this week.
The loan backs the development of a 900-foot, 670,000 sq ft tower.
“The 425 Park Avenue project presented a rare opportunity to gain exposure to a new office tower on Park Avenue with an exceptional design and sponsorship team,” said Jamie Henderson, head of the alternative investments group at Cornerstone.
“Given the pricing being achieved by such Manhattan trophy assets, Cornerstone found that the risk-reward metrics of this first mortgage investment provided an attractive opportunity that was well-suited to MassMutual’s investment criteria.”
The developers concurrently announced that Tokyo, Japan-based Tokyu Land Corporation and its subsidiaries will serve as co-equity partner and co-developer on the project, amid a slew of Asian companies investing heavily in US real estate.
It is one of the largest real estate investments in the history of Tokyu Land Corporation, whose parent company, Tokyu Fudosan Holdings, is one of Japan’s largest publicly-listed real estate firms with $15bn in assets.
Upon successfully completion, this would be the first full-block office tower constructed on Park Avenue in nearly five decades, the developers said. Located between East 55th and 56th Streets, the Norman Foster-designed tower will include a 45-foot tall grand lobby, two 38-foot transitional floors and a 38-foot tall penthouse floor.
Demolition of an existing building begins this month and the opening of the new building is scheduled for 2018.