BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, announced today that it has acquired an interest in the joint venture that owns 200 Fifth Avenue, a 14-story, approximately 870,000 square foot, LEED Gold certified, premier workplace located in New York City. BXP’s acquisition of this joint venture interest marks its second investment in the vibrant Midtown South neighborhood of Manhattan in the past twelve months.
Midtown South accounted for Manhattan’s three largest office lease transactions in October, proving the growing attractiveness of the neighborhood and its proximity to transit, dining, entertainment, and retail. In addition to its joint venture interest at 200 Fifth, BXP purchased 360 Park Avenue South, a 20-story 450,000 square foot office tower on the edge of NoMad, late last year. At 360, BXP plans to refresh the classically built tower with modern finishes, open layouts, and communal spaces that support the evolving needs and desires of today’s workforce.
“This acquisition demonstrates our commitment to the lively Midtown South neighborhood,” said Hilary Spann, EVP, New York Region, BXP. “Historic architecture, neighborhood dynamism, and Madison Square Park location combine to make 200 Fifth Avenue a premier workplace appealing to a variety of clients.”
200 Fifth Avenue sits at the corner of Fifth Avenue, Broadway, and 23rd Street, with frontage on Madison Square Park. Built in 1909, the property combines landmark historic architecture with a vibrant street level experience, all of which has been fully renovated and modernized. The property is currently 93% leased to clients including Grey Advertising, Tiffany & Company, and Yelp. Eataly occupies much of the first floor of the property, with various Italian markets, restaurants, and outdoor café spaces that energize the pedestrian and client experience. 200 Fifth Avenue features average floorplate sizes of approximately 60,000 square feet, providing layout flexibility for creative firms and appealing to a large variety of clients, as well as rooftop amenities.
With the acquisition, BXP now owns a 27% interest in the joint venture, and institutional investors advised by J.P. Morgan Global Alternatives own the remaining 73% interest. BXP also serves as the managing member, providing customary leasing and property management services for the joint venture. The purchase price for the joint venture interest was approximately $121 million, which excludes BXP’s pro rata share of the outstanding loan secured by the property. The mortgage loan has an outstanding principal balance of $600 million, bears interest at 4.34% per annum and matures in November 2028.
