Lubert-Adler Sells Stake in 114 Fifth Avenue Leasehold
- Oct 23, 2015
It’s rethink your finances time for one of the iconic office buildings in Manhattan’s sizzling Flatiron district.
With the changing of capital structure in place, Allianz now owns 95 percent in the ground lease at 114 Fifth Ave., while L&L continues to serve as the general partner of the venture, the managing agent and the leasing agent for the 350,000-square-foot building.
According to an official statement announcing the deal, Allianz paid $209 million for the asset, while the rest of the financial terms remained undisclosed. This translates into $53 million in profit for Lubert-Adler who—along with L&L—purchased the office building in January 2013 for $165 million. Lubert-Adler was advised by Eastdil Secured and Savills in the transaction.
The recapitalization follows a $45 million redevelopment included upgrades to the building’s lobby, elevators, windows, electrical infrastructure, access management system, and main entrance, as well as the addition of a landscaped rooftop amenity space.
The impressive leasing activity at 114 Fifth Ave. over the past 12 months resulted in full occupancy, with an even more impressive list of technology and media tenants: Gawker Media, First Look Media, Capital One, MasterCard, AKQA, Bank of America and digital media website Mashable—who signed a lease for 38,580 square feet of office space for the entire 14th and 15th floors in the building back in January 2014.
Image via 1145thavenue.com