BXP has sold a 10.6% equity interest in the development of 343 Madison Avenue in Midtown Manhattan to AVRS Partners, a New York-based real estate investment firm. The transaction involves a 46-story office project that BXP values at $2 billion, with financial terms of the equity sale itself not disclosed.
The deal adds another major Manhattan office asset to AVRS Partners’ relationship with BXP. AVRS, through an affiliate, is already a joint venture partner with BXP at the General Motors Building at 767 Fifth Avenue, one of the most prominent office properties in Manhattan. Following the closing of this latest transaction, AVRS now participates in two of BXP’s largest and most visible holdings in the borough.
Owen Thomas, BXP’s chairman and CEO, said the 343 Madison Avenue development underscores the firm’s ability to plan and execute complex projects within its development platform. He noted that the tower is already substantially pre-leased and remains on schedule and on budget, positioning it as a new “premier workplace” designed around the requirements of leading corporate occupiers.
Thomas also emphasized the importance of the firm’s partnerships, characterizing the AVRS investment as an expansion of an existing relationship that aligns BXP with an institutional real estate capital partner across multiple high-profile office assets in Manhattan. His comments framed the transaction as part of BXP’s broader approach to working with joint venture partners to create value for shareholders and co-investors.
The 343 Madison Avenue project will deliver new office space in Midtown Manhattan, though BXP has not released specific details on total square footage or the roster of tenants already committed to the building. The pre-leasing and construction progress described by BXP indicate that the project has reached a meaningful level of tenant commitment prior to completion, but no individual tenant names or lease terms were disclosed.
BXP said it may sell additional minority interests in the 343 Madison Avenue development over time, signaling that the REIT could continue to use partial equity sales to share ownership in the project with institutional partners. No information was provided on the structure, timing, or targeted scale of any potential future minority interest sales.
The announcement did not include details on construction financing, capital structure, or expected delivery date for the tower. BXP and AVRS also did not disclose how governance, decision-making, or asset management responsibilities are allocated within their partnership at 343 Madison Avenue or at the General Motors Building.
