Permits & development · Deals & development · 10/16/2026
BXP Sells 10.6% Stake in 343 Madison Avenue Tower to AVRS Partners
BXP sold a 10.6 percent stake in 343 Madison Avenue, a planned office tower just west of Grand Central, to AVRS Partners. The two firms already share ownership of the General Motors Building at 767 Fifth Avenue. Construction has not started, but law firm McDermott Will & Schulte has also signed for about 150,000 square feet.
Reported by Commercial ObserverRead the original ↗
What happened
BXP, which Commercial Observer calls the largest Class A office owner in the country, has sold a 10.6 percent stake in 343 Madison Avenue to AVRS Partners. The project is a planned 46-story, 930,000-square-foot office tower in Midtown Manhattan. It is expected to cost roughly $2 billion and to be finished in 2029. Bisnow reported the deal on October 15, 2026. Commercial Observer and The Real Deal followed on October 16.
The site is just west of Grand Central Terminal, between East 44th and 45th Streets. Bisnow said BXP keeps control of the project and will collect customary fees as the development, property and leasing manager. Bisnow and The Real Deal both said the deal gives BXP more financial flexibility and that BXP may sell more minority stakes later. This is the second deal between the two firms. They also share ownership of the General Motors Building at 767 Fifth Avenue, which BXP valued at $3.7 billion.
The new equity comes after a $1.2 billion construction loan. Wells Fargo led the loan, with Bank of America Securities, Bank of New York Mellon and JPMorgan Chase. Bisnow said the loan closed in July. The Real Deal said it carries an interest rate of SOFR plus 2.5 percentage points. That spread drops to 2.25 points once leasing and construction benchmarks are hit. The loan has a four-year initial term and a one-year extension option.
The sources differ on some details. Commercial Observer said construction has not yet begun. Bisnow and The Real Deal, citing the New York Post, said construction has reached the podium level. Commercial Observer and Bisnow said the tower is 56 percent preleased. Insurance and investment firm Starr signed for 275,000 square feet, and law firm McDermott Will & Schulte took about 150,000 square feet. The outlets give different months for those leases. The Real Deal said Starr expanded to 320,000 square feet across 14 floors. It also said two more tenants were in talks that would bring the tower to 70 percent preleased.
Key facts
- Address
- 343 Madison Avenue, between East 44th and 45th Streets, Midtown Manhattan
- Stake sold
- 10.6 percent equity stake to AVRS Partners
- Size
- 46 stories, about 930,000 square feet of office space
- Cost
- About $2 billion
- Construction loan
- $1.2 billion, led by Wells Fargo
- Preleased
- 56 percent, per Commercial Observer and Bisnow
- Anchor tenants
- Starr (275,000 sq ft) and McDermott Will & Schulte (about 150,000 sq ft)
- Expected completion
- 2029
What it means
Buyers and owners
This is a large Midtown office deal, not a housing project. It shows big investors are still putting money into new top-tier office space near Grand Central.
Landlords
Nothing in the reports changes rules, rents or programs for small residential landlords. The deal has no direct effect on residential buildings.
Tenants and voucher holders
The tower is all office space, so it adds no apartments and no affordable units. It does not affect vouchers or rent rules.
The highlights
- Planned 46-story, 930,000-square-foot tower is expected to cost about $2 billion.
- Building is 56% preleased, with C.V. Starr anchoring at 275,000 square feet.
- BXP secured $1.2 billion in construction financing; completion is set for 2029.
Why it matters Landlords
Big Midtown office bets show lenders and investors still back new Class A space, which shapes the wider NYC financing climate.
Not known yet
- How much AVRS paid for its 10.6 percent stake
- Whether BXP will sell more stakes, and to whom
- Which two additional tenants were reported to be in negotiations
- The exact current stage of construction, since outlets disagree
Background
Large New York office towers are often paid for with a mix of bank construction loans and equity from partners. A developer may sell a minority stake to bring in cash while keeping control and earning fees to manage construction, leasing and operations. Office developments like this are not subject to residential programs such as rent stabilization, housing lotteries or voucher rules.
Also drawn from: BXP sells equity stake in 343 Madison development (The Real Deal · New York) · BXP Lands Equity Partner For Madison Avenue Office Project (Bisnow New York)
Summary written by Bulwark from Commercial Observer’s reporting. The original story is at commercialobserver.com. This is general information, not legal advice.
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