BXP sells equity stake in 343 Madison office development

What happened

BXP has brought in an equity partner for its office tower under construction at 343 Madison Avenue in Midtown Manhattan, next to Grand Central Terminal. AVRS Partners, the firm of Edmond Safra, bought a 10.6 percent equity stake in the project. The Real Deal reported the deal on October 16, 2026, citing Bisnow. The project carries a $2 billion price tag.

According to a release on the deal, the equity gives BXP more financial flexibility. BXP, led by Owen Thomas, is leaving the door open for more equity deals in the future. Safra said in a statement that BXP has been a valued partner to his family for more than a decade.

Over the summer, BXP got a $1.2 billion construction loan for the project. The rate is SOFR plus 2.5 percentage points. The spread drops to 2.25 points once leasing and construction benchmarks are hit. Wells Fargo led the loan, with support from BofA Securities, Bank of New York Mellon and JPMorgan Chase. It has an initial four-year term and a one-year extension option.

The tower will be 46 stories and 930,000 square feet. Insurance firm Starr signed a 275,000-square-foot anchor lease in December, then expanded to 320,000 square feet across 14 floors. In June, Chicago law firm McDermott Will & Schulte signed for roughly 150,000 square feet. Commercial Observer reported that BXP said on its second-quarter earnings call that two more tenants were in negotiations, which would bring the tower to 70 percent pre-leased. The New York Post reported that construction recently reached the podium level. The building is not expected to open until 2029.