Funds managed by Blackstone’s real estate arm have acquired a 46% stake in a $1.4bn (€1.2bn) New York City office asset owned by US property group Fisher Brothers.
The Blackstone funds and Fisher Brothers will own the 1345 Avenue of the Americas building as part of a partnership that has also completed an $850m commercial mortgage-backed securities (CMBS) refinancing for the Midtown Manhattan building through Morgan Stanley, JP Morgan Chase and Citibank.
The 50-storey 2m sqft 1345 Avenue of the Americas asset is currently 92% leased.
David Levine, co-head of Americas acquisitions for Blackstone Real Estate, said: “Midtown Manhattan is the best-performing office market in the country and we are excited to partner with Fisher Brothers in this trophy asset investment.”
Winston Fisher, partner at Fisher Brothers, said: “This transaction reflects the tremendous value that premier, highly-amenitised office buildings continue to offer to leading institutional investors, such as Blackstone. The completion of the $850m refinancing package enables us to continue to strategically invest in the asset, while simultaneously increasing our ownership stake in the building.
“We remain bullish on the long-term Manhattan investment opportunity, which has been the hallmark of our family’s business for more than a century.”
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