L&L Holding Company and an institutional investor advised by J,P. Morgan Asset Management have formed a $500 million real estate joint venture partnership.
The new investment vehicle will provide L&L and J.P. Morgan with up to $4 billion in buying power to be used for acquisition and development purposes in New York City.
While the vehicle enables the joint venture to invest in a range of asset classes throughout the five boroughs, the focus will be the acquisition and redevelopment of value-add office properties in Manhattan.
L&L, which is currently undertaking two of New York’s most ambitious office developments at 425 Park Avenue and 390 Madison, has been on a steady growth trajectory since its inception in 2000. Over that time, L&L has built a portfolio of more than six million square feet of Class A commercial office properties and, in the process, has established a sterling track record spanning 26 acquisitions and $5.4 billion in transactions.
The firm also has significantly expanded its overall capabilities thanks to a recent hiring spree, in which it has added a number of highly-skilled and accomplished professionals to an L&L team that now numbers more than 250 people.
“We are in the midst of an unprecedented period of growth for L&L Holding Company in terms of the quantity, quality and complexity of the projects we are undertaking,” said L&L Holding President and Chief Investment Officer Robert Lapidus.
“In forming this partnership, we will have dedicated capital to pursue our strategic objectives.”
Added L&L Holding Chairman and CEO David Levinson, “We have made a concerted effort, through the projects we choose and the leadership team we have assembled, to boost our ability to embark upon New York’s complicated projects and create enduring value both for our investors and New York City. This joint venture will even further enhance our capacity by making us even more nimble and effective in the pursuit of new development opportunities.”
“We think now is the right time to align with L&L on a programmatic basis to seek assets in need of repositioning that will enable the joint venture to capitalize on changing tenant demands,” said Peter Sibilia, J.P. Morgan Asset Management’s Head of Northeast Acquisitions. “We look forward to continuing our long relationship with L&L and uncovering compelling investment opportunities for our client.”
L&L Holding is currently developing the Norman Foster-designed 425 Park Avenue, which will be the first full-block office tower to rise on the famed boulevard in half a century, as well as 390 Madison Avenue, a Grand Central district office tower that is currently undergoing an unprecedented re-massing and re-invention.
The firm has also developed a reputation for its combination of creativity, sensitivity and attention to detail for its work on landmark properties, including 200 Fifth Avenue and 195 Broadway, where a portion of the lobby has been restored and converted for use by Nobu Downtown and Anthropologie.