BXP, the largest owner of Class A office space in the United States, has divested a 10.6 per cent stake in 343 Madison Avenue. This property is a planned 46-storey office development spanning 930,000 square feet in the heart of Midtown Manhattan. The buyer is AVRS Partners, and the total cost of the project is estimated at approximately US$2 billion. News of this equity partnership was first published by BusinessWire.
Owen Thomas, Chairman and CEO of BXP, expressed his delight at expanding the business relationship with AVRS Partners through this investment. AVRS, founded in 2023 by Edmond M. Safra, also holds stakes in notable properties such as 77 Water Street in Manhattan's Financial District and One Willoughby Square, Brooklyn's tallest office tower.
Continued Partnership and Strategic Location
This transaction does not represent a new collaboration between BXP and AVRS. The companies are already co-owners of the General Motors Building at 767 Fifth Avenue in Manhattan, an office property valued at US$3.7 billion according to recent BXP filings. Edmond M. Safra emphasised that BXP has been a valued partner to his family for over a decade, and that AVRS is now expanding this relationship with a view to developing 343 Madison Avenue.
The capital injection by AVRS Partners comes weeks after BXP reportedly secured US$1.2 billion in construction financing for 343 Madison Avenue, according to the Commercial Observer. This financing was provided by a consortium consisting of Wells Fargo, Bank of America Securities, Bank of New York Mellon, and J.P. Morgan Chase. 343 Madison Avenue is located west of Grand Central Terminal, between East 44th Street and 45th Street, centrally positioned in Midtown's office corridor.
Strong Pre-letting and Further Developments
Although construction work for 343 Madison Avenue has not yet commenced, several significant lease agreements have already been finalised. C.V. Starr secured 275,000 square feet as an anchor tenant in October, and the law firm McDermott Will & Schulte leased approximately 150,000 square feet in April. Overall, the building is already 56 per cent pre-let.
343 Madison Avenue is one of several new high-rise office developments in the Midtown East corridor. These also include Vornado and Citadel's 350 Park Avenue, RXR's 175 Park Avenue, and SL Green's 346 Madison Avenue. Completion of the BXP and AVRS development is expected in 2029.
