The managers of Lehman Brothers' assets have sold the bankrupt bank's majority ownership stake in an 800,000 square-foot Manhattan office building to a real estate fund run by JP Morgan Asset Management.
According to data provider Real Capital Analytics, the bankrupt bank is rumoured to have sold the building, 200 Fifth Avenue, for $700 million, or nearly $800 per square foot. Lehman and L&L Holding Co. bought the former International Toy Center near Madison Square Park by for $480 million in 2007 and made $120 million in upgrades.
A report from The Wall Street Journal reveals that Lehman hire brokerage Eastdil Secured to find a buyer for its ownership stake, which exceeds 90 percent. L&L operates the property and will maintain its minority ownership stake.
At press time, representatives from Lehman and JP Morgan could not be reached for comment.