Rockpoint to take a half-stake in two Fisher Brothers’ Midtown office towers for $550M

July 17, 2013 09:30AM

Real estate private equity firm Rockpoint Group is in a hard contract to take a 49.5 percent stake in two Fisher Brothers’ office towers in Midtown for $550 million, the New York Post reported.

As part of the deal, Rockpoint will also assume $1 billion in debt for the two properties — the 1.9 million-square-foot 1345 Avenue of the Americas and the 1.1 million-square-foot 605 Third Avenue –bringing the price to $650 per square foot, according to the Post.

The deal was brokered by Eastdil Secured’s Adam Spies and Doug Harmon, and attracted worldwide interest. But Rockpoint was able to leverage their existing relationship with the Fishers on 299 Park Avenue and Park Avenue Plaza in order to close, according to the Post.

The tower at 1345 Avenue of the Americas includes the Ziegfeld Theather, while the tower at 605 Third Avenue comes with a six-story garage that is ripe for residential development. The Fishers will likely increase their equity interest in the site and build a slender residential tower of about 250,000 square feet, sources told the Post. [NYP, 1st item]  – Hiten Samtani