L&L Holding has purchased 114 Fifth Avenue and a 99-year leasehold in a $165 million joint venture with private equity firm Lubert-Adler, the New York Post reported. The transaction required creation of a new ground lease and modification of an existing loan, although the terms have not been disclosed.
L&L chairman and CEO David Levinson told the Post that the potential was strong for a “200 Fifth Avenue-style renovation.” The 800,000-square-foot office tower at 200 Fifth Avenue was low on tenants and heavily distressed following the the collapse of Lehman Brothers, which had a $480 million stake in the building. L&L restructured the debt and made capital improvements to the building with Lehman Brothers Holdings and together were eventually able to sell the building for approximately $700 million.
Some of the updates L&L plans for 114 Fifth will include new infrastructure systems, lobby and elevators and a landscaped roof, while bringing 330,000 square feet of prime office space to market.
L&L’s Joshua Carson, Yong Cho and Kevin Fallon negotiated the deal. [NYP] –Christopher Cameron