575 LEX'S NEW PARENTS

The 743k SF 575 Lexington Ave office building just sold for $484/SF and it's got almost as many parties in the capital stack as zeroes in its $360M price. Normandy Real Estate Partners Real Estate Fund III and a Prudential Real Estate Investors-advised German institutional investor are one half of the JV that just bought the property from Silverstein Properties and an institutional investor. New York Life Insurance Co is the other half. Normandy's Travis Feehan (snapped this afternoon) tells us the new owners plans to invest $20M to upgrade the 58-year-old building.
The JV also just closed on a five-year, floating-rate loan at 65% of the acquisition and rehab costs for the property, which we snapped this morning. (There was a time when if you claimed to see a loan rate floating, they'd put you in the looney bin.) On the debt side: CIBC, Bank of America, Blackstone, and RBC. JLL will lease up the 25% vacancy, which Normandy's Paul Teti tells us is mostly above the 20th floor, where floorplates are smaller.

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