Fisher Brothers, a fourth-generation real estate company that owns, manages, and operates spaces across the country, 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, which was investing along with Blackstone, also increased its majority ownership as part of the transaction. Plus, Fisher Brothers and Blackstone have completed a $850 million CMBS refinancing provided by Morgan Stanley, JP Morgan Chase, and Citibank.
Located about 50 floors above Midtown Manhattan and spanning 2 million square feet, 1345 Avenue of the Americas is 92% leased, with approximately 1.1 million square feet of leases signed since 2023. Home to a prestigious tenant roster such as 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 has 5,500 square feet of flexible meeting space, event capacity of up to 440 guests, a tenant lounge, a 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.
Advisors/Counsel: In the acquisition and refinancing, legal representation for Fisher Brothers was Paul Hastings, and Blackstone was represented by Fried Frank. Eastdil Secured represented the joint venture in the refinancing. And the lenders, Morgan Stanley, JP Morgan Chase, and Citibank, were represented by Dechert. Morgan Stanley also served as financial advisor to Fisher Brothers in connection with the acquisition.
KEY QUOTES:
“This transaction reflects the tremendous value that premier, highly-amenitized office buildings continue to offer to leading institutional investors, such as Blackstone. 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.”
Winston Fisher, Partner at Fisher Brothers
“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.”
David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate
