JLL Arranges $352M Refinancing for 425 Lexington Avenue as BlackRock and Goldman Sachs Back Midtown Manhattan Office Tower

JLL's Capital Markets group has arranged a $352 million floating-rate refinancing for 425 Lexington Avenue, a 31-story, 750,000-square-foot Class A office tower in Midtown Manhattan, the firm announced July 9. Goldman Sachs originated the single-asset, single-borrower loan, which was pre-placed entirely with funds and accounts managed by BlackRock on behalf of borrower Vanbarton Group.

Deal Structure and Key Parties

The transaction is structured as a floating-rate, single-asset single-borrower refinancing. Goldman Sachs originated the loan, which was pre-placed entirely with BlackRock-managed funds and accounts.

JLL's Capital Markets Debt Advisory team representing Vanbarton Group was led by Senior Managing Directors Christopher Peck and Drew Isaacson and Directors Christopher Pratt and Jennifer Zelko.

"As we move into the second half of 2026, New York City's office market shows exceptional strength, with high-quality space increasingly scarce," said Peck. "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."

Property Overview: 425 Lexington Avenue

425 Lexington Avenue occupies a full city block on Lexington Avenue between 43rd and 44th Streets, directly across from Grand Central Terminal. The LEED Gold-certified tower is 99 percent leased and counts global law firm Simpson Thacher as its long-time anchor tenant and global headquarters location.

Vanbarton Group has invested nearly $35 million in recent capital improvements to the property, including the newly delivered LX Club — a 16,700-square-foot amenity center featuring a wellness center with Technogym equipment, a sauna, a yoga studio, multiple tenant lounges, a 45-person conference facility, and a golf simulator.

Grand Central Submarket Context

425 Lexington Avenue sits within the Grand Central office submarket, which JLL describes as the city's top-performing office market, with vacancy for trophy and top-tier Class A product below two percent. The submarket is home to prominent multinational tenants including Blackstone, JPMorgan, Citadel, and MetLife, and benefits from direct adjacency to Grand Central Terminal.

Market Implications

The $352 million refinancing signals continued liquidity in the debt markets for high-quality office assets. JLL noted that the refinancing underscores the strength of the New York City office market and the liquidity in debt markets for well-located Class A office buildings.

Vanbarton Group, founded in 1992, is a vertically integrated real estate investment and advisory firm that manages private funds and programmatic ventures employing credit and equity investment strategies for global institutional investors. JLL (NYSE: JLL) is a global commercial real estate services and investment management company with annual revenue of $26.1 billion and operations in over 80 countries.

Sources

JLL Press Release via PR Newswire, July 9, 2026