October 22, 2012 / 8:00 PM / 5 years ago

Normandy buys Manhattan office building for $360 mln

NEW YORK, Oct 22 (Reuters) - Normandy Real Estate Partners said on Monday it has purchased 575 Lexington Ave, a 35-story office building between 51st and 52nd streets, in a joint venture with New York Life Insurance Co.

The price tag for the building was $360 million, according to a source familiar with the deal.

The sellers, Silverstein Properties Inc and pension fund California State Teachers' Retirement System, bought the property for $416 million near the height of the market in 2006. The loan had been modified by special servicer LNR last year.

The 743,240-square-foot office tower had previously been eyed by Rockrose Development, which did not go through with the deal.

Adam Spies and Douglas Harmon of Eastdil Secured represented the seller.

Tenants include New York Sports Club, Cornell University and the law firm Boise Schiller & Flexner.

Normandy Real Estate Fund III, which includes a German institutional investor, lead the deal. Normandy said it plans an extensive renovation for the building, including upgrading the lobby and overhauling the building's systems.

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