Normandy looks to sell 575 Lex for more than $650M

Property stands 35 stories with tenants including New York Sports Club and WeWork

Jan.January 08, 2020 03:50 PM
575 Lexington Avenue (Credit: Google Maps, iStock)

575 Lexington Avenue (Credit: Google Maps, iStock)

Normandy Real Estate Partners, Angelo Gordon & Co. and George Comfort & Sons are putting their Midtown office tower at 575 Lexington Avenue up for sale and hope to get more than $650 million for it.

Property tours have already started for the 35-story building building, between East 51st and East 52nd streets, according to the Commercial Observer. Tenants include the New York Sports Club, Weill Cornell Medical College and WeWork. The property is within the Midtown East area rezoned in 2017.

Normandy bought the property with investor New York Life Insurance Company in 2012 for $360 million from Silverstein Properties and the California State Teachers’ Retirement System. New York Life left the deal following a 2015 recapitalization, at which point Angelo Gordon and George Comfort & Sons joined.

The owners have completed roughly $50 million of renovations, including a new lobby, generators, building management system and all new windows. The building is about 88 percent leased with vacancy in the tower portion. Weill Cornell Medical College, one of the larger tenants in the building, has 10 years remaining on its lease.

SL Green sold the nearby Daily News Building at 220 East 42nd Street in October to Jacob Chetrit for $815 million. [CO] — Eddie Small

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