The Real Deal New York

Lehman to sell its majority stake in 425 Park Avenue

Eastdil Secured to handle sale

February 19, 2013 09:00AM

425 Park Avenue

Lehman Brothers is looking to sell its 90 percent stake in 425 Park Avenue, the Wall Street Journal reported. The 31-story, 567,340-square-foot building, located in Midtown East, is slated to be demolished and replaced with a 650,000-square-foot Norman Foster-designed office tower  being developed by L&L Holdings, which owns the remaining 10 percent stake in the current building.

Lehman and L&L bought the property in 2006, and Lehman valued its 90 percent stake at about $84 million in 2007, according to bankruptcy documents viewed by the Journal.

It is looking to get far more than that amount for its stake, a source told the Journal, and has tapped Eastdil Secured to market the property. Earlier this month, Lehman sold a 21-story, 1.2 million-square-foot building at 237 Park Avenue to RXR Realty for $800 million. [WSJ]Hiten Samtani

  • Peter Campbell

    Too bad. 425 is a dam nice looking building.

    Park Avenue will not benefit from a building TWICE
    the size, and you can kiss the sun you see in the picture goodbye!

  • kdz

    why would they demolish existing building only to gain less than 90,000 SF?

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