A three-party joint venture partnership has secured $360m in financing for the acquisition of the Grolier Building at 575 Lexington Avenue on the east side of Midtown Manhattan.
Angelo Gordon, George Comfort & Sons and NTT Urban Development paid Normandy Real Estate Partners for a majority, roughly 75% share of the 35-story office tower, valuing the property at $500m.
Normandy and its financial backers — New York Life and Prudential Real Estate Investors — bought the building in 2012 from New York City developer Larry Silverstein’s Silverstein Properties and the California State Teachers Retirement System for $360m, with the backing of a $210m loan from Canadian Imperial Bank of Commerce, city property records show.
Silverstein paid $416m for the property at the peak of the last real estate cycle in 2006, originally expecting to find higher-paying tenants but ultimately cutting his losses after the property fell into distress during the recession.
Current tenants at the 740,000 sq ft property include Weill Cornell Medical College, Boies Schiller & Flexner and Janney Montgomery Scott, in addition to retail tenant Staples and a New York Sports Club.