Tokyu, L&L, BGO sign $484M loan with Sumitomo Mitsui Trust in Midtown East, part of $911M deal

Tokyu Land Corporation, L&L Holding Company and BentallGreenOak through the entity 425 Park F&B LLC as borrower signed a loan with lender Sumitomo Mitsui Trust Bank valued at $484 million for the office tower at 425 Park Avenue in Midtown East, Manhattan.

This is part off a $911 million refinance according to Bloomberg. Tenants in the building include hedge fund Citadel and private equity firm Hellman & Friedman.

The deal closed on March 29, 2024 and was recorded on April 12, 2024. The property has 666,996 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $725 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 prior senior loan was $467.5 million from Otera Capital.

The property

The parcel has a total lot size of 666,996 square feet. The city-designated market value for the property in 2022 is $258.5 million. The most recent loan totaled $467.5 million and was provided by Otera Capital on December 17, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $2,500 in ECB penalties and $2,800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 5, 2021. On the lot, there is one active new building construction project for a 511,538 square-foot B building. The project was submitted by L&L Holding Company and filed by William Potts with plans filed September 18, 2013 and permitted January 25, 2016.

The block

On this tax block, PincusCo has identified the owners of 12 of the 25 commercial properties representing 1,121,074 square feet of the 1,446,501 square feet. The largest owner is L&L Holding Company, followed by Noorollah Asherian and then Palin Enterprises.
On the tax block, there were three new building construction projects totaling 624,252 square feet. The largest is a 511,538 square-foot business (B) building submitted by L&L Holding Company and filed by William Potts with plans filed September 18, 2013 and permitted August 18, 2014. The second largest is a 62-unit, 59,819 square-foot residential (R-2) building submitted by Zeckendorf Development and filed by Arthur Zeckendorf Iii with plans filed August 12, 2019 and permitted January 28, 2020.

The majority, or 82 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 6 percent of the space.

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