Fisher Brothers, Blackstone Close $1.4B Deal for NYC Skyscraper

Key Takeaways

Sector: Real Estate.
Geography: United States.

Analysis

Blackstone has acquired a 46% stake in the iconic office tower at 1345 Avenue of the Americas in Midtown Manhattan, partnering with Fisher Brothers in a joint venture that values the property at $1.4 billion. The transaction includes an $850 million commercial mortgage-backed securities (CMBS) refinancing arranged by Morgan Stanley, JPMorgan Chase, and Citibank.

The 50-story, 2 million-square-foot building is currently 92% leased, boasting a prestigious tenant roster that includes Intercontinental Exchange, Equitable Financial, and Fortress Investment Group. In a significant development last year, law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP signed a 765,000-square-foot lease, marking the largest commercial office lease in New York City for 2023.

Fisher Brothers previously completed a $120 million capital improvement project in 2021, featuring upgrades to the building’s exterior, a redesigned lobby with touchless elevators, and the addition of @Ease 1345, a 5,500-square-foot amenity floor designed by Rockwell Group. This amenity space includes flexible meeting areas, a tenant lounge, a wellness center, and New York City’s largest indoor terrarium.

Legal representation for Fisher Brothers was provided by Paul Hastings LLP, while Blackstone was represented by Fried Frank. Eastdil Secured arranged the refinancing on behalf of the joint venture.

This strategic partnership underscores Blackstone's renewed confidence in the Midtown Manhattan office market and Fisher Brothers' commitment to long-term investment in the city’s commercial real estate landscape.