Lehman Brothers Holdings Inc. is aiming to sell its 90 percent stake in 425 Park Avenue, a source familiar with the matter confirmed with The Commercial Observer. Eastdil Secured is marketing the property, according to the source.
A publicly available spreadsheet of Lehman’s commercial real estate holdings lists a building with a description similar to 425 Park Avenue: “Sandwich ground lease in an existing Class B building in New York City that is slated for demolition and redevelopment into a new office tower beginning 2015.” The list of holdings identifies Adam Spies of Eastil Secured as the broker for the property. The source familiar confirmed Spies as the broker for 425 Park Avenue, but the listing could not be immediately verified.
The Wall Street Journal first reported the story earlier today. The Midtown East building is set to be demolished and replaced with a new office tower designed by Foster + Partners.
Based on investment sales over the first nine months of the year, it looks like the No. 1 preferred asset is rental properties—especially in the metropolitan area. With record low vacancy rates—coupled with near-record high rents—local, national and international investors are seeking to own this asset class.
According to reports, law firm Kaye Scholer will be on the move once its new digs at 250 West 55th Street are completed. The law firm has signed a letter of intent for about 260,000-square feet of space at the Boston Properties tower, which is under construction and expected to open sometime in 2014.
A spokesperson for Boston Properties declined to comment, saying that it doesn’t comment on such reports. And a spokesperson for the law firm declined to comment as well, saying only that additional details would be available at some point next week.
Developer David Levinson is in talks to invest in and help redevelop 380 Madison Avenue, an 840,000-square-foot Midtown office building sources say.
The property is currently controlled by the mercurial and enigmatic investor and developer Sheldon Solow who has a leasehold on the property. But that interest runs out in 2014 and the owners of the building, a venture led by Deutsche Bank’s real estate investment fund RREEF, want to bring on a partner to overhaul the antiquated tower.