June 19 (Bloomberg) -- A partnership that includes New York developer Larry Silverstein agreed to sell 575 Lexington Ave., a midtown Manhattan office tower that had been threatened with foreclosure, to Normandy Real Estate Partners LLC and New York Life Insurance Co., said two people with knowledge of the deal.
Normandy and New York Life, which are equal partners in the transaction, agreed to pay $360 million for the 35-story building, said the people, who asked not to be named because the deal isn’t final. The agreement values the building at about $485 a square foot, and is less than the $416 million that Silverstein and the California State Teachers’ Retirement System paid for it in 2006 as property prices approached their peak.
The building was the subject of a foreclosure filing in January 2011 by representatives for its lenders. In October, the pension system known as Calstrs and Silverstein, the developer of towers at the World Trade Center site, made a $75 million payment toward a $325 million securitized loan on the building, according to mortgage data compiled by Bloomberg.
Dara McQuillan, a spokesman for Silverstein, and Ricardo Duran, a Calstrs spokesman, said they had no immediate comment. Susan Kloss, a spokeswoman for Normandy, and William Werfelman, a New York Life spokesman, didn’t immediately return telephone calls seeking comment.
Martha Wallau, a spokeswoman for Eastdil Secured LLC, whose brokers Doug Harmon and Adam Spies represented the sellers, also didn’t immediately return a call.
The agreement was reported earlier today by the Wall Street Journal.
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