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Park Avenue Plaza, Fisher Brothers’ 45-story office tower in Midtown East, has stood up to tenant turnover at an uncertain time for the Manhattan office market.
Occupying nearly half of its 1.2 million square feet, the building’s two largest tenants, Blackrock and insurance giant Aon, will vacate the building for good over the next 18 months. But much of their space is already spoken.
Jennison Associates, an asset management company owned by Prudential Financial, will lease 119,000 of the 375,000 square feet left at the end of Blackrock’s lease in April 2023, according to Morningstar DBRS. Jennison’s lease, signed in February for $ 93 per square foot, expires in 2040.
Aon’s 209,000 square foot lease also expires in April 2023, though most of its space is already sublet to financial firms Evercore and General Atlantic, both of which have agreements in place to sub-tenant. to leased tenants once Aon leaves.
Fisher Brothers owns the building at 55 East 52nd Street through a joint venture with Zhang Xin and Pan Shiyi, the founders of Soho China, an office developer whose $ 3 billion Blackstone sale plan was scuttled more early this year for regulatory reasons.
The company recently received a $ 575 million CMBS debt package to repay existing loans on the property, which will be sold as bonds to investors. The appraisal documents associated with the CMBS loan provide an overview of the finances of the property.
As of October 1, Park Avenue Plaza was 99% leased to 11 tenants, including major financial institutions Evercore and Morgan Stanley. Excluding space occupied by Blackrock and Aon, leases on just over 8% of the building’s leasable area are expected to expire during the 10-year term of the CMBS loan.
Morgan Stanley is behind the loan, which will pay investors a fixed annual interest rate of 2.84%, according to Morningstar DBRS.
Built in 1981, Park Avenue Plaza has received more than $ 38 million in capital investment since January 2020, including demolition of former tenant McKinsey & Co. space and refurbishment of the lobby and center. marketing.
Its location in Midtown’s Plaza District submarket, which contains 11.3 million square feet of office space from 47th Street to 65th Street and the East River to Sixth Avenue, makes the building a flat – Appropriate landing form amid the flight of tenants to quality.
Fisher Brothers is a multi-generational, family-owned real estate company with a history of owning and managing premier office space. Founded in 1915, the company has developed, owned or managed 1345 Avenue of the Americas, 605 Third Avenue and 299 Park Avenue in New York City as well as Station Place in Washington, DC, which collectively total over 6 million square feet.