The US alternative investments giant is working to secure a loan of 800 million US Dollar to finance the acquisition
US alternative investments giant Blackstone aims to acquire a substantial share of an office building at 1345 di Avenue of the Americas (6th Avenue) in Manhattan, New York City. The asset is a 50-storey tower between 54th and 55th Streets, with a view of Central Park, Reuters reported pointing out that the fund is also holding talks with a loan of 800 million US Dollars for financing the real. Rumours say that the facility will have a floating cost that could be equal to the current 425 – 450 bps Fed Funds rate.
Manhattan’s 1345 di Avenue of the Americas
The 1.9 million sqms tower currently belongs to Fisher Brothers (51%) and JPMorgan Global Alternatives (49%). Morningstar Credit Analytics reported that an approximately 600 million loan dating back to 2005 and due to mature in August 2025 is encumbering on the property. Market rumours say that Blackstone initially discussed for providing the current owners with refinancing resources but later decided to invest in the asset’s equity.
Fisher and JPMorgan completed the 120 million worth tower renovation in 2023 and refurbished the external space, the atrium, as well as adding an amenity floor and touch-less lifts. Wharton & Garrison signed a lease agreement until 2047 for 38% of the building.PrivateEquityWire said that this transaction highlights a renewed interest of Blackstone in New York office buildings, despite the company’s significant shift in recent years towards sectors such as logistics, data centres and rental housing. Office space accounts for less than 2% of Blackstone’s real estate portfolio, sharply down from 60% in 2007.
