Blackstone closing in on One Manhattan West stake

Deal with Brookfield value Manhattan office building at more than $2.8B

New York /
Dec.December 17, 2021 11:45 AM
Brookfield Asset Management CEO Bruce Flatt and Blackstone CEO Stephen Schwarzman with One Manhattan West (Getty, Brookfield)

Brookfield Asset Management CEO Bruce Flatt and Blackstone CEO Stephen Schwarzman with One Manhattan West (Getty, Brookfield)

Blackstone is reportedly close to a deal to snap up a stake in one of New York City’s most prominent office developments.

The Wall Street Journal reported the firm is in advanced discussions to acquire a 49 percent stake in Brookfield Asset Management’s One Manhattan West. The deal would value the office building at more than $2.85 billion.

People familiar with the matter told the Journal a deal for the stake could be reached in the coming days.

Bloomberg previously reported that Cushman & Wakefield was advising Brookfield in soliciting interest in the stake sale.

The 70-story office tower nabbed the biggest financing deal of 2020 when Brookfield and Qatar Investment Authority scored $1.5 billion in September 2020 through the CMBS market. Two mezzanine loans totaling $300 million boosted the financing package to $1.8 billion.

An August 2020 rent roll of the property revealed the weighted average lease term for tenants to be more than 17 years. Law firm Skadden Arps and accounting firm Ernst & Young combined to make up more than 58 percent of the base rent. Other major tenants at One Manhattan West include Accenture and the National Hockey League.

As of August 2020, the 2.1 million-square-foot office portion of the building was 94 percent leased to seven major tenants, along with three Brookfield affiliates. The average base rent was about $91 per square foot.

The deal for a stake in One Manhattan West is familiar territory for both firms. In 2017, Blackstone acquired a 49 percent stake at Brookfield’s One Liberty Plaza.

Prior to the pandemic, the two firms were reportedly in talks about a potential sale of the 2.3-million-square-foot office tower in the Financial District, hoping to net about $1.6 billion to $1.7 billion in a sale. It’s not clear if the firms are still eyeing a sale of the building.

[WSJ] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Equity Group Investments chairman Sam Zell (Getty, iStock)
    Office market’s recovery will outpace retail amid “viability” questions, Zell says
    Office market’s recovery will outpace retail amid “viability” questions, Zell says
    (iStock)
    CRE sales hit record $809B in 2021
    CRE sales hit record $809B in 2021
    Steven Pozycki, chief executive officer, SJP Properties, in front of 111 River Street in Hoboken, NJ (SJP Properties, LoopNet, iStock)
    SJP, David Werner buy waterfront Hoboken office, retail property
    SJP, David Werner buy waterfront Hoboken office, retail property
    SUNY WCC President Belinda Miles and the Cross County Center in Yonkers (Great Ink Communications/Marx Realty)
    College leases 40K sf at ex-Sears in Yonkers
    College leases 40K sf at ex-Sears in Yonkers
    Meridian Capital’s Ralph Herzka with 165 Central Avenue, 198 Scholes Street, 11 Gunther Place in Brooklyn (Getty, Google Maps, Apartments)
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    Southampton Town supervisor Jay Schneiderman (jayschneiderman.com, Google Maps)
    Southampton Town considers buying 40 acres
    Southampton Town considers buying 40 acres
    Alan Feldman, chief executive officer, president & chairman of the board, Resource REIT; Stephen Schwarzman, chairman, ceo & co-founder, Blackstone (Resource REIT, Getty Images, 1000 Spalding Apartment Homes)
    Blackstone to pay $3.7B for REIT in latest rental push
    Blackstone to pay $3.7B for REIT in latest rental push
    360 Kingsland Avenue in Greenpoint, Brooklyn (Google)
    Sitex Group pays $30M for Greenpoint industrial property
    Sitex Group pays $30M for Greenpoint industrial property
    arrow_forward_ios

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

    Loading...