Orrick (“Orrick”) advised the U.S. real estate subsidiary of Tokyu Land Corporation (“Tokyu”), one of the largest Japanese conglomerates, on its significant equity investment in the 425 Park Avenue development project, notably the first full-block office development on Manhattan’s Park Avenue in three decades. This week, a joint venture of Tokyu, developer L&L Holding Company and GreenOak Real Estate secured $556 million in construction financing from MassMutual Financial Group affiliate Cornerstone Real Estate Advisers to fund the development of the 897-foot office tower.
The joint venture plans to demolish the existing office building and build a premier, state-of-the-art, creative office building designed by Foster + Associates. With financing now secured, interior demolition has begun and the joint venture expects the new tower to be completed by 2018.
425 Park Avenue represents the flagship investment for Tokyu, which launched its U.S. real estate investment platform about a year ago. Orrick has assisted Tokyu with nearly all of its other U.S. investments to date, including commercial assets in New York and Texas.
“We’re thrilled to have been a part of Tokyu’s major entry into the U.S. market”, said partner Michael Haworth. “A cross-border deal such as this one requires a high level of coordination across jurisdictions, practice groups and time zones (and sleepless nights),” elaborated partner Dennis Martin.
The cross-border U.S./Tokyo Orrick team was led by partners Michael Haworth and Dennis Martin and included partners Yuko Ino, Toshi Tsuchiya and Grady Bolding along with senior counsel Edward Eisert and associates Jean Luyat, David Gotsill and Ajay Koduri.