Blackstone Seals $850M CMBS Loan to Buy Stake in 1345 Avenue of Americas

Blackstone has secured $850 million of commercial mortgage-backed securities (CMBS) financing to purchase a nearly 50 percent stake in a Midtown Manhattan office tower majority-owned by Fisher Brothers.

Morgan Stanley led a lending syndicate for the loan with Citigroup and J.P. Morgan Chase for Blacktone’s 49 percent acquisition of the 50-story 1345 Avenue of the Americas, according to a source familiar with the deal. Traded first reported the two-year loan with three one-year extension options that replaces a 20-year loan set to expire in August.

Eastdil Secured arranged the transaction with a team consisting of Grant Frankel, Ken Ziebelman and Ethan Pond.

Blackstone’s sizable minority stake was previously owned by institutional investors advised by J.P. Morgan Global Alternatives, according to Reuters, which first reported in February that the private equity giant was seeking an $800 million acquisition loan for the building.

The 1.9 million-square-foot office tower secured the largest New York City office lease of 2023 when law firm Paul, Weiss, Rifkind, Wharton & Garrison inked a 765,000-square-foot deal, Commercial Observer reported at the time. 

Other tenants in the building, which was renovated in 2021, include law firm Ellenoff Grossman & Schole, hedge fund Canyon Partners, shared office space provider Virgo Business Centers and New York Stock Exchange owner Intercontinental Exchange. 

Fisher Brothers, Citigroup and J.P. Morgan did not immediately return requests for comment. Blackstone and Morgan Stanley declined to comment. 

Andrew Coen can be reached at acoen@commercialobserver.com