The purchase and partners
On Tuesday, L&L Infinite announced the start of its buying program with the purchase of the 42-story office building at 600 Third Ave., paying $245 million for the Midtown East asset. Partners on the deal included affiliates of Mack Real Estate Group, BLDG Management and BD Blakely. The property was acquired from L&L Holding Co. and an institutional investor that was not named.
Financing and building details
Bain Capital supplied a $215 million loan to fund the transaction. The tower totals 575,254 square feet, sits between East 39th Street and East 40th Street, and is 92% occupied. Among the current occupants are the law firm Polsinelli and the private equity firm 3G Capital.
Market backdrop and leadership
As companies have pulled employees back into offices after the lockdown period, competition for Manhattan space has intensified. Midtown East, in particular, has gained from its proximity to key transit nodes like Grand Central Terminal. "New York City has been on fire as far as leasing goes," said Burger, the former CEO of Silverstein Properties.
"It's really made a full recovery." Burger and Levinson formed L&L Infinite earlier this year. Levinson is the CEO of L&L Holding, which is separate from the joint venture.
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Strategy and what to watch
According to Burger, the joint venture aims to acquire office and multifamily properties in New York, where new supply is scarce, while also assessing opportunities across Florida. For anyone tracking commercial real estate, that approach highlights markets where tenants are still showing up.
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