Silverstein Properties and partner California State Teachers’ Retirement System (CalSTRS) have entered into a contract to sell their 35-story office building at 575 Lexington Avenue for about $360 million to Normandy Real Estate Partners and New York Life Insurance, the Wall Street Journal reports.
Silverstein and CalSTRS paid $416 million for the building in 2006, according to the paper. They defaulted on their debt in 2011, but avoided foreclosure by making a $75 million payment toward the loan on the building, the WSJ reports.
The reported $360 million sale price represented a $51 million drop from what Silverstein and CalSTRS originally paid, but it was better than the $281 million appraised value placed on the building last year, the WSJ article notes.
The tower floors of the 740,000-square-foot property are currently vacant, while the lower floors are occupied by a New York Sports Club, Cornell University and several other tenants.