L&L Holding Buys Lehman's Interest in 425 Park Ave for $140M

L&L Holding Co., a privately-held, vertically- integrated real. estate company, has acquired Lehman Brothers' 90% interest in 425 Park Avenue. L&L paid close to $140 million, about $240 per square foot, for Lehman's portion of the property, valued at $84 million in 2006. L&L Holding originally acquired the site in 2006 in partnership with Lehman, and has now secured long-term investment partners for a planned development that will see the property torn down to its steel and redesigned as a world-class, 21st-century office tower, according to a CoStar report.

L&L announced last April that it had plans to replace the existing tower with a new state-of-the-art, LEED-certified skyscraper. Norman Foster, Jean Nouvel, Zaha Hadid and Richard Meier were a few of the architects that L&L invited to join in a competition for the redevelopment of the 65 year-old tower; Foster + Partners was named the winner in October 2012. The 425 Park MAS Presentation with David Levinson + Norman Fos can be seen here.

David Levinson, chairman and CEO of L&L Holding, described the plan as an "once-in-a-lifetime" opportunity. "It's not often that you get a vacant building on Park Avenue and it's the first time that's happened in 50 years," he told GlobeSt.com. "It's a very important moment and we want to create the finest building we possibly can and we are going out to what we believe are some of the brightest, creative architectural minds out there who work with us and collaborate with us in creating this very important iconic structure."

L&L declined to name its investment partners on the deal. Construction on the new 41-story office property is slated to start in 2013 and is expected to be completed by 2017.

For more news and information visit Blumberg Capital Partners.