L&L Holding Co. formed a joint venture with an undisclosed domestic pension fund to spend $4 billion on property deals in New York City, The Real Deal reported, citing L&L President Robert Lapidus.

The joint venture has $500 million in dry powder that it will use to finance new value-add deals that L&L Holding specializes in, such as the speculative office development at 425 Park Ave. and the 200,000-square-foot 150 5th Ave.

The joint venture will purchase assets as a general partner in the equity position of the capital stack, and through involving capital partners and taking on debt.

JPMorgan was the pension fund's adviser.