Blackstone is close to striking a deal for an office tower in Midtown Manhattan, 1345 Avenue of the Americas — which would mark the investment giant's first asset class-related investment in the city in about three years, according to a report from Bloomberg.
Currently, the 1.9 million square foot building is owned in partnership between the Fisher Brothers and JPMorgan Asset Management.
However, Bloomberg warned that there is no guarantee the two will complete the sale to Blackstone, although it's progressing in that direction as considerations remain ongoing. Also, while the negotiations for the exact price are unclear, S&P Global in a November report assessed the value of 1345 Avenue at $896 million. That represents a significant decrease from the $1.25 billion value when a loan for the property was issued.
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Both Fisher and JPMorgan completed a $120 million renovation of the property in 2023. It includes improvements to the exterior, the lobby, adding an amenity floor and touch-less elevators. Also, the 50-story tower on 6th Avenue between 54th and 55th Streets offers views of Central Park.
Bloomberg said that the acquisition would be Blackstone's first "notable" office investment in New York City since it acquired 49 percent equity control in One Manhattan West from Brookfield and Qatar Investment Authority in March 2022. However, the NYC-based firm did invest in the city in November for retail. That amounted to $197.5 million, relating to a four-asset, 131,000-square-foot portfolio in SoHo, Manhattan.
But perhaps Blackstone is starting to take note of NYC's strong recovery from the pandemic. The quarterly VTS Office Demand Index (VODI) has revealed that the metro area's office demand has reached 25.3% year-over-year growth. The recovery not only leads the nation but demand in the region is now even above pre-pandemic levels.
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