What the financial titans pay at Fisher Brothers’ Park Avenue Plaza

Blackrock may be exiting, but half of the space set for vacancy at Midtown tower in next 2 years is already claimed

New York /
Nov.November 16, 2021 08:00 AM
55 East 52nd Street and Kenneth Fisher (Court Square, Fisher Brothers)

55 East 52nd Street and Kenneth Fisher (Court Square, Fisher Brothers)

The following is a preview of one of the hundreds of data sets that will be available on TRD Pro, the one-stop real estate terminal that provides you with all the data and market information you need in one single location.

Park Avenue Plaza, Fisher Brothers’ 45-story office tower in Midtown East, has weathered 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 biggest tenants, Blackrock and insurance giant Aon, will exit for good within the next 18 months. But much of their space is already spoken for.

Jennison Associates, an asset management firm owned by Prudential Financial, will lease 119,000 of the 375,000 square feet left behind when Blackrock’s lease ends 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 subleased to financial firms Evercore and General Atlantic, both of which have agreements in place to move from subtenants to leasing tenants once Aon exits.

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 proposed $3 billion sale to Blackstone was scuttled earlier this year over regulatory concerns.

The venture recently received a $575 million CMBS debt package to retire existing loans on the property, which will be sold as bonds to investors. Ratings documents associated with the CMBS loan provide an inside look at the property’s finances.

As of Oct. 1, Park Avenue Plaza was 99 percent leased to 11 tenants, including major financial institutions Evercore and Morgan Stanley. Excluding the space occupied by Blackrock and Aon, leases on just over 8 percent of the building’s rentable area are scheduled to expire over the CMBS loan’s 10-year term.

Morgan Stanley originated the loan, which will pay investors a fixed annual interest rate of 2.84 percent, according to Morningstar DBRS.

Built in 1981, Park Avenue Plaza has received more than $38 million in capital investment since January 2020, including the demolition of former tenant McKinsey & Co.’s space and renovations to the lobby and marketing center.

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 from the East River to Sixth Avenue, makes the building a suitable landing pad amid tenants’ flight to quality.

Fisher Brothers is a multigenerational, family-owned real estate company with a history of owning and managing prime office space. Founded in 1915, the firm has developed, owned or managed 1345 Avenue of the Americas, 605 Third Avenue and 299 Park Avenue in New York as well as Station Place in Washington, D.C., which collectively total more than 6 million square feet.





    Related Articles

    arrow_forward_ios
    L&L Holding Company’s David Berkey and Polsinelli’s Gabriel Dabiri along with 600 Third Avenue (Getty, L&L Holding Company, Polsinelli)
    L&L, BlackRock sign law firm to renewal, expansion at 600 Third Ave
    L&L, BlackRock sign law firm to renewal, expansion at 600 Third Ave
    200 Park Avenue and Tishman Speyer's Rob Speyer(Tishman Speyer, Getty)
    MetLife Building gets the luck of the Irish
    MetLife Building gets the luck of the Irish
    100 Print Shop Road in Enfield, CT and President of the Lego Group in the Americas Skip Kodak
    Lego letting go of Connecticut office
    Lego letting go of Connecticut office
    Mark Zuckerberg, Jeff Bezos, Hudson Yards and San Francisco's Salesforce tower (Getty, Dead.rabbit/CC BY-SA 4.0/via Wikimedia Commons)
    Tech office leasing plummeted in fourth quarter
    Tech office leasing plummeted in fourth quarter
     Rudin Management’s Bill Rudin and 3 Times Square
    Rudin gets tipsy at 3 Times Square
    Rudin gets tipsy at 3 Times Square
    cliffside, building, money
    $16B in CMBS loans nearing cliff in NYC
    $16B in CMBS loans nearing cliff in NYC
    200 East 83rd Street, Alexa Lambert, Alison Black, Shelton Smith
    Naftali’s 200 East 83rd Street tops Thursday’s 10 priciest resi sales
    Naftali’s 200 East 83rd Street tops Thursday’s 10 priciest resi sales
    275 Atlantic Avenue (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Thomson200/CC0/via Wikimedia Commons)
    Brooklyn leads NYC in demolition permits — by a wide margin
    Brooklyn leads NYC in demolition permits — by a wide margin
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...