Tuesday, June 30, 2015

Von Karman Office Building Sold

CBRE announced this week that it had arranged the sale of 17885 Von Karman in Irvine, CA on behalf of funds managed by Oaktree Capital Management, L.P. & Hines. According to a report from the OC Register, the property is part of the Irvine office complex known to many as the Washington Mutual campus. Terms of the deal were not disclosed. Designed by Callison Architecture, Inc., the building was constructed in 2007 and includes striking features such as a modern exterior, first-class interior finishes and virtually column-free floor plates.

"Orange County continues to be an attractive basis market compared to West Los Angeles, Seattle and the San Francisco Bay Area. This sale is still below peak pricing and replacement cost for Orange County unlike core deals in those other coastal gateway markets," said CBRE vice chairman Kevin Shannon, who represented the sellers in the transaction. "The leasing momentum in Orange County Airport submarket has continued to the point where new speculative office space is warranted similar to those other coastal markets as well. Southern California in general has experienced a slower market recovery but is definitely starting to catch up in this cycle to the San Francisco Bay Area and Seattle."

For more news and information visit Blumberg Partners.

Monday, June 29, 2015

CBRE Buys TH Real Estate Portfolio for €346M

CBRE Global Investors announced the purchase of a portfolio of seven European logistics properties from TH Real Estate, the London based investment management company, for €346 million, or $385.4 million US. The portfolio was sold by Warburg-HIH Invest and TIAA-CREF, which was previously owned by the Warburg-Henderson Pan-Europa Fonds 1 and 3 and TIAA-CREF, according to an IPE report. CBRE Global Investment Partners said it would retain TH Real Estate to manage the portfolio.

Jeremy Plummer, Head of CBRE Global Investment Partners said of the deal: "Logistics is a preferred sector of GIP and finding the right assets and operating partner is key in our search. One of the key attractions of this pan European logistics portfolio was the pre-specification of assets enabling us to underwrite not only our operating partner but also the underlying real estate. We believe the portfolio will deliver an attractive income return for our investors, while our operating partner can also successfully grow net operating income."

Mike Sales, MD, Europe, TH Real Estate, added: "Given the weight of capital in the market seeking exposure to the logistics sector, combining assets to facilitate a portfolio disposal made good commercial sense for both clients with increased scale attracting greater liquidity and a pricing premium. We were successfully able to guide both clients through this process in order to secure an optimal exit solution."

For more news and information visit Blumberg Partners.

Friday, June 26, 2015

Albany Road Buys Industrial Portfolio

Boston-based Albany Road Real Estate Partners has purchased a portfolio of seven industrial properties in Connecticut from Massachusetts commercial landlord Winstanley Enterprises for $35.2 million. Totaling 330,000 square feet, the seven-building portfolio consisting of the Inwood and WinBrook business parks was purchased by Winstanley in 2003 and 2008 respectively. The CBRE Hartford Capital Markets team of Patrick Mulready and John McCormick represented Winstanley in the deal; Albany Road's representation was not disclosed.

The four buildings Winstanley sold at 30, 50, 65 and 70 Inwood Road total 161,883 square feet and are fully leased to tenants, including Henkel, HESCO, NuMotion, Physicians for Women's Health and ALARM New England, brokers said. Demian Gage, CFO of Winstanley Enterprises, commented on the disposition saying, "The team at CBRE did a great job conducting a thorough marketing process. They provided exceptional advisory services throughout the process and played a key role in closing a complicated, multi-building sale."

Pat Mulready, Senior Vice President at CBRE/New England, also commented on the sale saying, "The Portfolio was well-positioned for sale by Winstanley, with a diverse, strong credit-tenant rent roll; enabling Albany Road RE to acquire an institutional-quality group of assets to add to their growing Connecticut portfolio."

For more news and information visit Blumberg Partners.

Thursday, June 25, 2015

Blackstone Mortgage Trust Acquires GE Portfolio

Blackstone Mortgage Trust, Inc., an REIT managed by BXMT Advisors L.L.C., a subsidiary of Blackstone, announced that it has completed the acquisition of substantially all of the GE Capital Real Estate mortgage loan portfolio. The sale of the GE/Mubadala JV to BXMT had been reported earlier this month; however, the REIT did not expressly identify the JV as a part of the GE Capital loan acquisition until Monday's announcement that it had closed on the portfolio, according to a GlobeSt.com report. In an SEC filing earlier this month, it made reference to "an additional $435.5 million of loan participation interests which are pari passu to related interests included in the loan portfolio."

Steve Plavin, BXMT's Chief Executive Officer, said, "I'm very pleased with our execution in closing the purchase of the GE loans. We have now acquired $4.8 billion of loans, including the participation interests from the Mubadala-GE joint venture. Because of the accelerated closing timeframe, the third quarter will now fully reflect the increased earnings power from these loans as well as the beneficial impact of greater scale and capital deployment on our ability to generate core earnings and dividends."

For more news and information visit Blumberg Partners.

Wednesday, June 24, 2015

Forest City Washington Seeks Ballston Fast Track

Forest City Washington, the Mid-Atlantic hub for real estate company Forest City Enterprises, Inc., has requested that the Arlington County Board put their $300-million Ballston Common Mall redevelopment project on the fast track for approvals. Forest City first revealed its plans for the Ballston Common Mall redevelopment in 2013, and acquired the Ballston Common Office Center in 2005. "So what's holding this back? After nearly 11 months, the site plan submitted by Forest City has yet to be accepted by the county, a process that typically takes 60 days," said Arlington Chamber of Commerce president Kevin Shooshan in the June edition of the Arlingtonian, the Chamber's member newsletter.

Marc McCauley, director of real estate development for Arlington Economic Development, says that Forest City Washington reported that potential tenants showed keen interest in the Ballston Common project at the International Council of Shopping Centers leasing conference in Las Vegas last month. "After Las Vegas, we understand more now than ever about the importance about getting something done this year, so they can start thinking about their 2018 buys," McCauley says. "There are a lot of great new projects surrounding us, in the District, Fairfax and Alexandria, and with these tenants, if you miss them, you miss them. They might not be looking next year."

According to a GlobeSt.com report, Forest City Washington is also seeking to create a public-private partnership with a potential direct investment by Arlington County, or perhaps tax-increment financing to leverage county funding.

Arlington County Board members on June 16 directed County Manager Barbara Donnellan to work with the mall's owner and develop options – quickly – that would include a public-private partnership on the redevelopment project. "We need to learn to be nimble. That's the name of the game these days," said County Board member Libby Garvey.

For more news and information visit Blumberg Partners.

Tuesday, June 23, 2015

Laurus Buys Hughes Center for $111M

Real estate investment and development firm Laurus Corporation announced this week that it had purchased the Promenade at Howard Hughes Center, an approximately 250,000 square-foot retail center positioned along the 405 Freeway at Sepulveda Boulevard. According to an OC Register article, Laurus Corp. paid $111 million for the property with plans to spend $30 million to renovate the property. Irvine investment firm Passco Cos. sold the property; full terms of the deal and representation were not disclosed.

The renovation marks the first major investment in the property since it was constructed in 2001. "Our decision to acquire the Promenade at Howard Hughes Center and invest at this level demonstrates our confidence in an important, growing community, and the purchasing power of the residents and employees who live and work in such close proximity – both in the Howard Hughes Center and in Playa Vista," said Jean Paul Szita, President and co-founder of Laurus Corporation. "Our significant investment aligns well with our core strategy of adding value to compelling assets in prime locations, and will help set a solid foundation for the long-term vision for the property."

Positioned along the west side of the 405 Freeway, the Promenade at Howard Hughes Center is viewed by nearly 725,000 people traveling on the main traffic artery each day. The center is also in close range of the Silicon Beach movement in Playa Vista, which has attracted companies including Google, Yahoo!, IMAX and Electronic Arts, among many of the most progressive technology companies in the country. This marks the second big deal of the year for Laurus, according to a Los Angeles Business Journal article. In February, the firm spent a submarket-high $52.5 million for a 163,000 square-foot, eight-story building in Pasadena from Heitman.

For more news and information visit Blumberg Partners.

Promenade at Howard Hughes Center

Monday, June 22, 2015

Blumberg in the News

Blumberg Grain was featured in a ZAYWA article this week titled Blumberg Grain unveils the first Aggregation Center of the Shouna Development Project in Egypt, an initiative supported by President Abdel Fattah al-Sisi’s Viva Egypt Fund. An excerpt follows:

Minister of Supply, Dr Khaled Hanafy commented, “This is a great achievement for the Egyptians, we are now moving towards a future with improved infrastructure which supports President Abdel Fattah al-Sisi’s vision to build a sustainable economy, which is open, inclusive, and transparent. Blumberg Grain has delivered a system that will transform our nation’s grain infrastructure and we look forward to the system being fully complete and integrated.”

The Shouna Development Project brings to Egypt the latest food security technology that will allow for screening, drying, cleaning, grading, and bagging of wheat. This will enable processing capacity of 3.7 million metric tons of wheat per year, and create 750,000 metric tons of new static storage capacity, in turn revolutionizing the local wheat harvest value chain in Egypt. A second phase of the project would see an additional 207 Shouna modernized, bringing the total up to 300 sites.

David Blumberg, Chief Executive Officer of Blumberg Grain, Middle East and Africa said, “Blumberg Grain is helping advance the Egyptian Economic Development Strategy Towards 2030, which seeks to improve infrastructure, build a modern and democratic society and create jobs. We want to thank President Abdel Fattah al-Sisi, the Ministry of Supply, and the Army Engineering Authority who have been the driving force of this project, assisting in turning concept into reality.”

To read the full article, click here. For more news and information visit Blumberg Partners.

Wednesday, June 17, 2015

Blumberg in the News

David Blumberg, Chief Executive Officer of Blumberg Grain – West Africa, was interviewed this month in Business Today Egypt in an article titled Blumberg Grain Provides Solutions to Egypt's Grain Spoiling Problem. An excerpt follows:

Egypt has a major issue with grain spoiling. Some 40% of grain spoils every year, why?
Egypt regularly faces post-harvest wheat losses of approximately 40% due to spoilage occurring in the traditional, open-air storage facilities currently being used, commonly known as Shouna. This loss is due to depletion by pests, pilferage, rot and inclement weather.

What is the solution that Blumberg Grain provide to this problem? And how much can it reduce the percentage of spoiled grain?
The Shouna Development Project is a unique collaboration between the Ministry of Supply, Ministry of Defense and Blumberg Grain. The first phase of the project will revamp 93 Shouna (of 164 total planned) located across the country with modernized food security warehouses, known as Blumberg Grain Aggregation Centers.

This first phase of the project will enable primary processing of 3. 7 million metric tons of wheat per year across a platform of 3.6 million square feet of storage space.

The project will create one of the world’s largest and most sophisticated integrated food security systems for grain storage.

The Blumberg Grain Aggregation Centers, when properly implemented, can reduce postharvest losses down to 5% or less. The system will support the government in recovering crops lost to post harvest losses, saving Egypt up to an estimated USD 200 million annually.

To read the full interview, click here. For more news and information, visit Blumberg Partners.

Tuesday, June 16, 2015

Brookfield Sells 49% Portfolio Interest to AustralianSuper

Australia's largest pension fund, AustralianSuper, has entered the Washington, DC market with the acquisition of a 49% interest in a portfolio of office buildings valued at $1.32 billion. Brookfield Property Partners, which will realize net proceeds of $349 million from the transaction, will retain management and leasing responsibilities at the eight buildings under terms of the joint venture deal. AustralianSuper was represented by Jim Halliwell and Dan Thornton at Principal Real Estate Investors.

"We continue to see healthy demand from investment partners in core, stabilized office properties in major markets, and took this opportunity to bring AustralianSuper into Washington, DC as part of our ongoing capital recycling initiative," said Ric Clark, CEO of Brookfield Property Group. "We are committed to maintaining our presence in Washington and are pleased with our growing relationship with AustralianSuper."

Jack McGougan, Head of Property at AustralianSuper, added "We are pleased to further strengthen our partnership with Brookfield Property Partners, whom we consider to be among the premier office asset managers globally. This transaction allows AustralianSuper to substantially increase its direct holdings in offshore property, in line with its strategy of investing in established assets with strong long-term growth potential."

Five of the assets are located in the East End, the premier submarket in the region, with additional diversity in other core submarkets. The eight buildings totaling 2.2 million square feet are currently 96% occupied. AustralianSuper took a similar stake in a $600m office tower in Boston earlier this year and has also bought property in London and is chasing opportunities in Europe, in line with its strategy, according to an article from The Australian.

For more news and information visit Blumberg Partners.

Monday, June 15, 2015

Bridge Development Secures $20M Loan for New Industrial Project

Bridge Development Partners, the Chicago, IL-based real estate developer, has secured a $20.1 million senior secured construction loan provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. The funds will be used to construct a new Class A distribution building in Union, NJ. Terms of the transaction were not disclosed.

Matt Galligan, President of CIT Real Estate Finance, said in a statement, "We like the New Jersey industrial market as it is favorably positioned with easy access to New York City and serves as a central location between Boston and Washington DC. We're pleased to provide this financing to Bridge Development Partners and look forward to their continued growth on the East Coast."

"Activity at the Port of NY/NJ remains strong. Stabilized demand and strong market fundamentals continue to drive confidence in NJ's industrial market and growth within the Port submarket," added Steve Reedy, Managing Director of CIT Real Estate Finance. "We are pleased to put our commercial real estate expertise and knowledge to work for Bridge Development Partners and look forward to expanding this relationship."

Jeff Milanaik, Principal of Bridge Development Partners, said, "We're excited to begin construction of this Class A property which furthers our continued expansion on the East Coast. New Jersey is a leading destination for businesses coveting centrally located industrial space along the northeast seaboard. This state-of-the-art facility will be located within 4 miles of the Newark Liberty International Airport and the New Jersey Turnpike, and within 6 miles of the NY/NJ Port, with direct access from both I-78 and the Garden State Parkway. We value CIT's market knowledge and ability to timely complete this transaction."

For more news and information visit Blumberg Partners.

Friday, June 12, 2015

Billingsley Gets $41.5M Loan for 7-Eleven HQ

Billingsley Company, the Dallas-based real estate development company founded in 1978 by Lucy and Henry Billingsley, has secured a $41.5 million construction-to-permanent loan for the 325,000-square-foot, Class A corporate headquarters campus for 7-Eleven currently under construction. HFF, led by director Cullen Aderhold, senior managing director Trey Morsbach and real estate analyst Chad Russell, worked on behalf of Billingsley Company to secure the 12-year construction-to-permanent loan through Pacific Life Insurance Company

The 7-Eleven building is part of the Cypress Waters master-planned community in Irving and Dallas, a 1,000-acre development on a 362-acre lake within five minutes of DFW airport. Billingsley jump started the $3.5 billion master-planned, mixed-use development at the northeast corner of Belt Line Road and Interstate 635 last February, a massive project with plans to include a corporate campus of 4.5 million square feet of office space, 10,000 apartments and townhomes, 400,000 square feet of retail space and three one-acre parks.

More than 1,300 7-Eleven employees will make the move from downtown Dallas to the new Cypress Waters offices at the end of this year, according to a Dallas News report. The sprawling mid-rise office campus for 7-Eleven will include ample parking with surface parking lots and a parking garage for its employees' vehicles. Nationstar Mortgage also has a new 175,585 square-foot office building in Cypress Waters, and another 327,183 square-foot, 4-story office project is planned for California-based CoreLogic, which will relocate workers from Westlake and Richardson to the project in 2017.

For more news and information visit Blumberg Partners.

Thursday, June 11, 2015

World Wide Group Selling 6 UES Buildings

Real estate investment firm World Wide Group has placed six buildings up for sale on the Upper East Side that could pave way for a new tower on 60th Street. The collection of low-rise buildings at 143-161 E. 60th is being exclusively marketed by Cushman & Wakefield and could command a price of approximately $300 million, according to GlobeSt.com. The development site is across the street from Bloomingdale's flagship department store, and includes the building that was the longtime home of famed dive bar Subway Inn, which recently relocated. The site can accommodate a roughly 280,000-square-foot tower that could potentially rise as high as 1,000 feet, according to a Crain's report.

"This is a world-class site upon which something very special will be developed. I am sure we will have interest from developers from every corner of the globe," says Cushman & Wakefield's Bob Knakal, chairman, New York investment sales.

"World Wide Group has invested more than a decade assembling and preparing this world class development," added David Lowenfeld, COO of the World Wide Group. "The assemblage at 143-161 E. 60th St. is located in one of the most prominent neighborhoods in Manhattan—if not the world—and we look forward to turning it over to a new owner who will lead the development in its next stage of value realization."

For more news and information visit Blumberg Partners.

Wednesday, June 10, 2015

New Partnership to Develop IL Distribution Facility

F. Greek Development, the East Brunswick-based industrial real estate company, announced that it has entered into a partnership with Chicago-based real estate firm Distribution Realty Group to build a speculative Class A distribution facility in Bolingbrook, Illinois. The joint venture has acquired a 11.16 acre site at 990 Veterans Parkway to develop a 182,875 square foot class A distribution facility scheduled for completion within a year.

"Chicago is one of the country's Tier 1 markets," David Greek of F. Greek Development said in a prepared statement. "With over 1.3 billion square feet of industrial inventory, it is a critical link in the U.S. supply chain. We are excited to be expanding our presence here."

"This is a dynamic opportunity for both Distribution Realty Group and Greek Development," said James Love, Managing Partner of Distribution Realty Group. "FGD is supplying the capital resources along with an experienced team of managers that will work together with the team of Distribution Realty to diligently manage every phase of this project from the entitlement process straight through to project completion and property management."

Set to break ground this summer, the building design will feature insulated tilt-up construction, 32' ceiling clear height, large bay spacing, ESFR sprinkler systems, corporate quality glass storefronts, ample dock loading, deep truck courts, trailer parking and the ability to demise the building for multiple tenants. The new project will be the first in the Chicago market by F. Greek, an active industrial developer in its home state and Pennsylvania.

For more news and information visit Blumberg Partners.

Tuesday, June 9, 2015

J World Buys NJ Facility

J World Sports Inc., an international backpack and luggage retailer, has purchased 107 Bauer Drive in Oakland, New Jersey, a 62,368-square-foot Class A warehouse and distribution space. Jones Lang LaSalle facilitated the sale, serving as representative of the seller, Wagner SprayTech Corp. Jame Yi with Kingstone Realty represented J World Sports in the deal; the sale price and full terms were not disclosed.

"J World Sports was looking for more space for its thriving business," said Howard Weinberg, executive vice president at JLL. "Located within Oakland-McBride Technical Park, 107 Bauer Drive offered the backpack and luggage retailer with the expansion space it required in a facility that more than met its needs."

Constructed in 1976, the property features 18- to 20-foot ceiling heights, three loading docks and one drive-in door, and 88 parking spaces. The building totals 62,368 square feet of warehouse and distribution space, along with approximately 7,994 square feet of office space.

For more news and information visit Blumberg Partners.

Monday, June 8, 2015

Montana Avenue Getting Creative with Industrial

Montana Avenue Capital Partners (MAC), a Santa Monica, CA-based real estate company, has purchased a Class C industrial building at 2400 Marine Avenue in Redondo Beach, CA with plans to convert it into a creative office property. MAC purchased the property for $9.5 million from its original owner, Klein Family Partnership, with plans to invest another $2 million in the conversion, which will be rebranded as a collaborative workspace called "LINQ on Marine." Full terms of the deal were not disclosed. MAC was represented by JLL’s Steve Solomon, who will also handle the building’s leasing. The seller, Klein Family Partnership, was represented by JLL’s Luke Staubitz, Harvey Beesen and Andrew Dilfer.

"The South Bay continues to be transformed into a highly desirable location for companies looking for creative office space," said JLL Los Angeles' Steve Solomon. "2400 Marine Avenue is ideal for companies to attract and retain highly sought after professionals in this competitive environment. We have seen interest from several industries from healthcare to trade and imports to fashion apparel to technology and new media."

New features of the metro-adjacent property will include: polished concrete floors and exposed ceilings, glass roll-up doors, skylights, indoor/outdoor collaborative workspace and wraparound patio spaces, EV charging stations, new tenant signage, and upgraded landscaping.

For more news and information visit Blumberg Partners.

Thursday, June 4, 2015

DC Office Obsolescence Creep?

A new report from GlobeSt.com suggests that whether DC landlords will admit it or not, a certain percentage of the city's buildings have become, or are becoming obsolete. "The rapid obsolescence of B and C properties, some of which cannot be cured, is surprising," said Newmark Grubb Knight Frank's Senior Managing Director of Research Greg Leisch. "In my 45-year career I have never seen such rapid obsolescence." Obsolete, in current vernacular, indicates that a property lacks robust amenities or an urban location, are not convenient to mass transit, or have smaller floor plates or an extensive glass line.

NGKF are still preparing their findings for a full report and, according to GlobeSt.com, will reveal them in an upcoming white paper. An excerpt from the report follows:

"There has always been a difference between best-in-class office product and the rest of the market," Leisch tells GlobeSt.com. "Now, though, the differences have become more profound."

One telling statistic, Paul says, is that the share of office leasing by Class A offices has really taken off since the recession.

According to the report, "Since the start of 2008, Class A office properties in the Washington metro area have totaled 18.6 million square feet of net absorption, while Class B and C properties have experienced negative 13.8 million square feet of absorption, with each year reflecting positive net new demand for Class A space and a loss of occupancy in the balance of the market."

For more news and information visit Blumberg Partners.

Wednesday, June 3, 2015

Hudson Breaks Ground on ICON Tower

ICON Sunset BronsonHudson Pacific Properties, the Los Angeles-based real estate company, broke ground this week on its $200 million creative ICON office tower on the 10.6-acre Sunset Bronson Studios lot on Sunset Boulevard in Hollywood. The development will consist of a 14-story, 323,000-square-foot office tower, a six-story, 90,000-square-foot adjacent creative office building, and a 1,600-stall parking structure.

"ICON will be the culmination of our efforts to transform the landmark Sunset Bronson Studios into the country's premier next-generation media and entertainment campus," said Victor Coleman, the Hudson Pacific Properties' Chairman and CEO. "The project affords industry leading companies a unique opportunity to have it all – innovative architecture, sustainable design and immediate access to top-of-the-line sound stages and production facilities at the center of the world's entertainment capital."

"Hollywood is entering a new Golden Age of film production," said Los Angeles Mayor Eric Garcetti, who attended the groundbreaking along with City Councilman Mitch O'Farrell, as well as other business and civic leaders. "Tech, media and production companies will fill the floors of Hudson's ICON office tower and the larger Sunset Bronson expansion and make ICON a microcosm of L.A.'s diverse creative economy. What's better? The project alone will create 520 construction jobs, benefiting Angelenos across our city."

Scheduled for completion in 2016, McCarthy is the general contractor for the vertical campus featuring design by Gensler Architects and state-of-the-art building systems expected to achieve LEED gold certification. Hudson purchased Sunset Bronson in 2008 from the Tribune Co. for $125 million.

For more news and information visit Blumberg Partners.

Tuesday, June 2, 2015

Sara Investment Buys Former Airplane Factory

Sara Investment Real Estate announced this week that it had completed the purchase of the Crown/Frost buildings in the Crown Center complex in Northeast Minneapolis, a former factory where airplane components were manufactured in WWII. Hillcrest Development sold the fully leased portfolio to Sara Investment for an undisclosed amount.

"We are excited to expand our presence in the Minneapolis market," said Traci Dalsin, President of Sara Investment Real Estate, headquartered in Madison, Wisconsin. "This is a very special property in one of the most desirable areas of the city. Northeast Minneapolis has it all – creative development, entrepreneurs and lots of positive momentum. We’re delighted to be here."

The portfolio includes:

Frost Building at 1209 Tyler Street NE, a 40,000 square foot building redeveloped by Hillcrest in 2009; major tenants include Modern Survey and Dogwood Coffee Co.

Crown Center at 1331 Tyler Street NE, a 140,000 square foot multi-building complex, also renovated in 2009 for $8 million; tenants include Tactile Systems Technology, Blu Dot Furniture and Bauhaus Brew Labs.

1515 Central Avenue NE, a 100,000 square foot trio of buildings acquired by Hillcrest in 2012 and also renovated; tenants include Sociable Cider Werks and architectural firm James Dayton Design.

For more news and information visit Blumberg Partners.

Monday, June 1, 2015

L&L Secures Funds for New Park Ave Tower

New York-based developer L&L Holding Company along with its co-managing partner, GreenOak Real Estate, announced this week that it had secured full financing for a new 47-story office tower on Park Avenue in Midtown Manhattan’s famed Plaza District. MassMutual Financial Group will provide a $556 million construction loan for 425 Park Avenue, which will be the first full-block office tower constructed on Park Avenue in nearly 50 years. Tokyu Land Corporation will serve as co-equity partner and co-developer on the property, co-investing alongside co-managing partners L&L Holding and affiliates of GreenOak Real Estate, while L&L Holding will continue to serve as the lead developer for 425 Park Avenue. The loan was arranged by HFF.

L&L Holding Chairman and CEO David Levinson said, "We are honored to welcome Tokyu Land as our partner and MassMutual as our lender for 425 Park Avenue, which we all believe will redefine the modern office environment, enhance the timeless allure of the Plaza district, and serve as Midtown East’s first 21st Century icon."

"Everyone associated with this project recognizes this as a rare chance to create a modern yet enduring legacy on the fabled Park Avenue," added GreenOak Co-Founder and Partner Sonny Kalsi. "We are thrilled that one of our most trusted international partners, Tokyu Land, also recognized this fact and agreed to join as a co-investor."

Norman Foster-designed 425 Park Avenue, located between East 55th and 56th Streets, will include a 45-foot tall grand lobby, two 38-foot tall transitional floors, one of which will serve as a first-class amenity floor for the tower’s inhabitants, and a 38-foot tall penthouse floor with unparalleled, 360 degree views of Manhattan and beyond. Demolition of the current building will begin this month, with completion and opening of the new 425 Park Avenue is scheduled for 2018.

For more news and information visit Blumberg Partners.