BXP Sells Interest in $2B Manhattan Project
The 930,000-square-foot office tower is set to come online in 2029.
BXP has sold a 10.6 percent interest in its $2 billion, 930,000-square-foot 343 Madison Ave. office development in Manhattan. AVRS Partners bought the stake.
A few months ago, Wells Fargo Bank issued a $1.2 billion construction loan for the property. The current deal adds more capital to the project while reducing BXP’s equity commitment.
The transaction also builds on the existing relationship between BXP and AVRS Partners. Edmond Safra, one of AVRS’s founders, is part of the family whose real estate arm owns a minority stake in the General Motors Building alongside BXP.
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BXP broke ground on 343 Madison last year, while completion is expected in the third quarter of 2029. Development partners also include architect Kohn Pedersen Fox.
The development rises at 343 Madison Ave., between the East 44th and 45th streets. The site is across from The World Economic Forum, with the Chrysler Building a few blocks away. Times Square is less than 1 mile west.
Close up on a Manhattan office development
The 46-story tower will comprise 40 workplace floors, ranging from 22,000 to 27,500 square feet. Amenities will be hospitality-forward and include conference and dining spaces, terraces, a lobby café and bicycle storage, among others. The property is targeting LEED Platinum, Well Core, Energy Star 85+, Fitwel and WiredScore Platinum certifications.
The development is 56 percent preleased. BXP secured two major tenants this year—investment and insurance firm Starr signed a 275,000-square-foot, 20-year lease, while law firm McDermott Will & Schulte will occupy 150,000 square feet at the tower, across floors 31 through 37. CBRE is in charge of leasing.
Some notable Manhattan developments
As of October, there were 33 office properties totaling 29 million square feet in various stages of development across Manhattan, according to Yardi Matrix. The largest ones are the 2 million-square-foot 2 World Trade Center in Lower Manhattan and the 1.4 million square-foot 70 Hudson Yards.
However, the borough’s office completions totaled only 3.2 million feet year-over-year as of September, the same data provider shows. Moreover, only one property measuring 215,732 square feet came online in the first nine months of this year.
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