The Real Deal New York

AXA asking $4B for pair of Midtown office towers: report

Adjacent office buildings said to sell at a premium due to "institutional-quality" tenants

August 21, 2015 08:00AM

From left: 1285 Sixth Avenue and 787 Seventh Avenue

From left: 1285 Sixth Avenue and 787 Seventh Avenue

AXA Financial is marketing two adjacent office buildings in Midtown, hoping to sell the pair for a huge sum in a booming market.

The two towers, each compromising 1.7 million square feet, stand on a combined 4-acre site between West 51st and West 52 streets, at 787 Seventh Avenue and 1285 Sixth Avenue. AXA reportedly wants $4 billion for the buildings.

The 54-story 787 Seventh Avenue, built in 1985, is 100 percent owned by AXA Financial, the U.S. arm of the French investment firm AXA. The building has a 98.4 percent occupancy rate, according to Costar.

AXA owns only half of the 42-story building at 1285 Sixth Avenue, known as the Equitable Center. JPMorgan Chase controls the other half. The building is completely full, the Commercial Observer reported.

Listing agents for the two properties are Douglas Harmon and Adam Spies of Eastdil Secured.

A source told the Observer that the high prices AXA is asking for the buildings are reasonable, because they’re occupied by “institutional-quality tenants [with] high credit, and the in-place market rents are significantly below market.”

Massive Swiss bank UBS AG took 120,000 square feet at 787 Seventh Avenue in 2013. The bank has long occupied 700,000 square feet at 1285 Sixth Avenue as well. [NYO]Ariel Stulberg

Correction: A previous version of this article misstated 1285 Sixth Avenue’s occupancy rate, due to an error in the source article.