JLL announced it has arranged a $352 million refinancing for 425 Lexington Avenue, a 31-story, 750,000-square-foot Class A office tower in Midtown Manhattan. The financing was secured on behalf of borrower Vanbarton Group through Goldman Sachs, with the loan pre-placed entirely with funds and accounts managed by BlackRock.
The refinancing highlights continued lender demand for high-quality office assets in prime locations, particularly in New York City’s top-performing submarkets. The floating-rate, single-asset single-borrower loan reflects strong investor confidence in well-leased, institutionally maintained office properties.
Located directly across from Grand Central Terminal, 425 Lexington Avenue benefits from a highly desirable location in the Grand Central submarket, where vacancy rates for top-tier Class A buildings remain below 2%. The property is currently 99% leased and serves as the global headquarters for law firm Simpson Thacher.
The building has undergone nearly $35 million in recent upgrades, including the addition of a 16,700-square-foot amenity center known as the LX Club. The facility features a wellness center, yoga studio, tenant lounges, conference space, and other premium amenities designed to attract and retain tenants.
JLL’s Capital Markets Debt Advisory team represented Vanbarton Group in the transaction, underscoring the firm’s role in facilitating large-scale real estate financing deals amid improving market conditions.
KEY QUOTE:
“As we move into the second half of 2026, New York City’s office market shows exceptional strength, with high-quality space increasingly scarce. Premium office towers like 425 Lexington continue to attract robust financing interest from lenders driven by the building’s consistently strong occupancy rates, prime location opposite the city’s most heavily trafficked transit hub, and recent upgrades that include highly desirable tenant amenities.”
Christopher Peck, Senior Managing Director at JLL
