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Fisher Brothers Announces Investment in 1345 Avenue of the Americas From Blackstone Real Estate

1. Blackstone acquired a 46% interest in 1345 Avenue of the Americas. 2. The full deal valued at $1.4 billion reflects Manhattan's office demand. 3. 1345 Avenue is 92% leased with notable tenants signed in 2023. 4. Blackstone and Fisher Brothers secured an $850 million refinancing deal. 5. David Levine highlighted Midtown Manhattan's top performance in office markets.

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FAQ

Why Bullish?

The acquisition indicates strong institutional confidence in prime real estate, historically boosting BX's market sentiment.

How important is it?

The transaction showcases BX's strategic growth in key markets, likely boosting investor confidence.

Why Long Term?

Investments in high-leverage properties typically yield sustained value over multiple years, similar to previous real estate ventures by BX.

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NEW YORK--(BUSINESS WIRE)--Fisher Brothers, a fourth-generation real estate company that owns, manages and operates unique spaces across the country, today announced that funds affiliated with Blackstone Real Estate acquired a 46% joint-control interest in 1345 Avenue of the Americas at a full capitalization of $1.4 billion. Fisher Brothers, investing alongside Blackstone, also increased its majority ownership as part of the transaction. In addition, Fisher Brothers and Blackstone have completed a $850 million CMBS refinancing provided by Morgan Stanley, JP Morgan Chase, and Citibank. “This transaction reflects the tremendous value that premier, highly-amenitized office buildings continue to offer to leading institutional investors, such as Blackstone,” said Winston Fisher, Partner at Fisher Brothers. “The completion of the $850 million 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.” 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.” Standing 50 floors above Midtown Manhattan and spanning 2 million square feet, 1345 Avenue of the Americas is 92% leased, with nearly 1.1 million square feet of leases signed since 2023. Home to a prestigious tenant roster—including Intercontinental Exchange, Equitable Financial, and Fortress Investment Group—the building secured the largest commercial office lease of 2023 when Paul, Weiss, Rifkind, Wharton & Garrison LLP took 765,000 square feet. In 2021, Fisher Brothers completed a $120 million large-scale capital improvement project with the help of Skidmore, Owings & Merrill, which included upgrades to the building’s exterior, an artfully designed lobby with upgraded touchless elevators, and a new amenity floor designed by Rockwell Group, @Ease 1345. The amenity floor features 5,500 square feet of flexible meeting space, event capacity of up to 440 guests, tenant lounge, wellness center and New York City’s largest indoor terrarium. Ease Hospitality offers the latest, modernized technology to host engaging meetings and experiences. A second Ease Hospitality location opened at Fisher Brothers’ 605 Third Avenue in 2022. In both the acquisition and refinancing, legal representation for Fisher Brothers was Paul Hastings LLP, and Blackstone was represented by Fried Frank. Eastdil Secured LLC represented the joint venture in the refinancing. The lenders, Morgan Stanley, JP Morgan Chase, and Citibank, were represented by Dechert LLP. Morgan Stanley also served as financial advisor to Fisher Brothers in connection with the acquisition. About Fisher Brothers For more than a century, Fisher Brothers has excelled in real estate innovation, developing, owning and operating unique spaces that enable people to thrive. From cutting-edge building design to neighborhood-defining art installations, Fisher Brothers leverages each real estate asset to create one-of-a-kind spaces for people to live, work and play. Fisher Brothers currently owns and operates commercial, residential and experiential retail assets in New York City, Las Vegas, Washington, DC and Miami. For additional information about Fisher Brothers, please visit the company’s website at www.fisherbrothers.com.

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