SHERIDAN, WYOMING -- July 10, 2026 -- JLL Capital Markets has arranged a $352 million refinancing for 425 Lexington Avenue, a 31-story Class A office tower in Midtown Manhattan. The transaction, structured as a floating-rate single-asset single-borrower loan, was secured through Goldman Sachs and pre-placed entirely with funds managed by BlackRock. JLL represented the borrower, Vanbarton Group, in the refinancing of the 750,000-square-foot property located directly across from Grand Central Terminal.
LEED Gold Tower Maintains 99 Percent Occupancy
The office building operates at 99 percent leased capacity. It serves as global headquarters for Simpson Thacher, the anchor tenant. Vanbarton Group has invested nearly $35 million in recent property upgrades, including a newly delivered 16,700-square-foot amenity center called the LX Club. The facility features Technogym equipment, a sauna, yoga studio, multiple tenant lounges, a 45-person conference facility, and a golf simulator. The tower holds LEED Gold certification.
Grand Central Submarket Shows Two Percent Vacancy for Premium Space
The property occupies a full city block on Lexington Avenue between 43rd and 44th Streets. Its location in the Grand Central office submarket positions it within the city's top performing commercial district. Trophy and top-tier Class A product in this submarket currently shows less than two percent vacancy. Major corporate tenants in the area include Blackstone, JP Morgan, Citadel, and MetLife.
Debt Markets Demonstrate Liquidity for Well-Located Assets
Christopher Peck, Senior Managing Director at JLL, led the debt advisory team alongside Drew Isaacson, Christopher Pratt, and Jennifer Zelko. The financing structure reflects lender confidence in premium Manhattan office properties. Peck noted that high-quality office space remains scarce as the market moves into the second half of 2026. Premium towers continue to attract robust financing interest driven by strong occupancy rates, prime transit-adjacent locations, and modern tenant amenities.
Transit Access Drives Institutional Lender Interest
The building's position opposite Grand Central Terminal provides tenants with access to the city's most heavily trafficked transit hub. This connectivity factor contributed to the financing terms secured through the transaction. The property's institutional maintenance standards and recent capital improvements supported the refinancing execution. BlackRock's full pre-placement of the loan demonstrates institutional appetite for debt backed by well-located Manhattan office assets.
Vanbarton Group Manages Diverse Real Estate Investment Strategies
Vanbarton Group, founded in 1992, operates as a vertically integrated real estate investment and advisory firm. The company manages private funds and programmatic ventures for global institutional investors. Its team maintains a presence throughout the United States. The firm employs both credit and equity investment strategies, functioning as both owner and lender across its portfolio.
Capital Markets Group Operates 3,000 Specialists Across 50 Countries
JLL's Capital Markets group provides capital solutions including investment sales, debt advisory, mergers and acquisitions, corporate finance, loan sales, equity and fund placement, net lease, and derivative advisory services. The group maintains more than 3,000 specialists worldwide with offices in nearly 50 countries. JLL reported annual revenue of $26.1 billion as of March 31, 2026, with operations in over 80 countries and a global workforce exceeding 113,000.
For more information about JLL's commercial real estate services and investment management capabilities, visit https://www.jll.com.