Blackstone, the world’s largest alternative asset manager, is pursuing an $800m loan to help finance its acquisition of a stake in a prominent 50-storey office tower in Manhattan, according to a report by Reuters citing sources familiar with the matter.
The deal involves Blackstone buying a significant equity stake in the building at 1345 Avenue of the Americas, which is currently co-owned by institutional investors advised by JPMorgan Global Alternatives and real estate firm Fisher Brothers. JPMorgan’s investors hold a 49% stake, while Fisher Brothers retains 51%, according to the sources.
Blackstone initially explored the deal as a lender, offering to refinance the building’s existing $600m loan, but later shifted its focus to acquiring an equity stake, sources revealed. The building’s current loan, originating in 2005, is set to mature in August, according to Morningstar Credit Analytics.
The planned loan for the acquisition will feature a floating interest rate, likely aligned with the current US Federal Reserve funds rate of 425 to 450 basis points, a source said.
This move marks a renewed interest by Blackstone in New York City office properties, despite the company’s significant shift in recent years toward sectors like logistics, data centres, and rental housing. Today, offices account for less than 2% of Blackstone’s real estate portfolio, a sharp decline from over 60% in 2007.
