The Real Deal New York

Lehman to sell its majority stake in 425 Park Avenue

Eastdil Secured to handle sale

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?