L&L, BentallGreenOak, Tokyu signs $467.5M refi loan with Blackstone, Otera, part of $911.4M financing

L&L Holding Company, BentallGreenOak, and Tokyu Land Corporation through the entity 425 Park Owner LLC as borrower signed a refi loan with lender Blackstone Group and Otera Capital through the entity Otera Capital Investment IX Inc. valued at $467.5 million for the office building (O4) at 425 Park Avenue in Midtown East, Manhattan. The owners control the property through a ground lease. The fee owner is Safehold Inc.
The deal closed on December 17, 2021 and was recorded on January 7, 2022. The prior lender was MassMutual which held debt that had an original loan amount of $556.4 million.
The property has 666,996 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $700 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

The signatory for L&L Holding Company, BentallGreenOak, and Tokyu Land Corporation was Robert T. Lapidus. The signatory for Blackstone Group and Otera Capital was Paul A. Chin and Roy Lall.
(121333921)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building on January 5, 2021. (121333921)
This is L&L refinancing their leasehold interest in 425 Park Avenue. The total debt is $911.4 million and was led by Blackstone Real Estate Debt Strategies, according to the Commercial Observer. The article did not mention Otera Capital. The recorded debt does not mention Blackstone. The amount of first mortgage debt recorded in Acris was reduced from $556.4 million (the construction loan) to $467.5 million. The fee is owned by Safehold Inc. and ground leased to L&L. The brokers were JLL’s Michael Tepedino and Michael Gigliotti.
In Midtown East, the majority, or 62 percent of the 83.8 million square feet of built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, Midtown East has 4.1 times the average sales volume in the city with $1.1 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Midtown East has 4.1 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Manhattan. It had 3.6 million square feet of commercial construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
On the tax block, the majority, or 61 percent of the 1.9 million square feet of built space are office buildings, with residential elevator buildings next occupying 24 percent of the space.
Within a 400-foot radius of 425 Park Avenue, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, one was in new building development. It was a new building permit issued on November 19, 2020 for a 59,819-square-foot R-2 building with 62 residential units at 115 East 55th Street.
Of those eight items, three were sales above $5 million totaling $66.7 million. The most recent of the three was Rybak Development which bought the 8,824-square-foot, nine-unit mixed-use building (K2) on 656 Lexington Avenue for $24.4 million from James Biagi on December 22, 2021.
Of those eight items, four were loans above $5 million totaling $146.0 million. The most recent of the four was Oestreicher Properties which borrowed $31.0 million from Bank Leumi secured by the 0-square-foot, 21-unit office building (O6) on 430 Park Avenue on August 30, 2021.

Direct link to Acris document. link