UPDATE 1-Lehman to sell Midtown Manhattan building to RXR, Walton St

NEW YORK Tue Feb 12, 2013 1:20pm EST

NEW YORK Feb 12 (Reuters) - Lehman Brothers Holdings Inc has agreed to sell 237 Park Avenue, a 21-story Midtown Manhattan office building, to RXR Realty and Walton Street Capital LLC, the winning bidders said on Tuesday.

The purchase price is $820 million, two sources familiar with deal said.

The pending sale comes just months after Lehman agreed to sell its biggest property holding, apartment owner Archstone, to AvalonBay Communities Inc and Equity Residential for $6.5 billion plus the assumption of debt.

Lehman, which collapsed in 2008, emerged from bankruptcy in March 2012 and is selling assets to repay creditors.

The 1.25-million square foot building is on Park Avenue between 45th and 46th streets, close to Grand Central Terminal, and is 80 percent occupied, RXR and Walton Street said in a statement.

RXR, one of the biggest owners of New York City property and Walton Street, a private real estate investment company, plan to renovate the building. Plans include new entrances, a redesigned atrium and new elevator cabs. They also plan to install a new glass facade enclosure on the two top floors, allowing for floor-to-ceiling windows.

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