JPMorgan Asset Management has sold its 49% interest in Fisher Brothers’ 605 Third Ave., with the transaction based on a $425 million valuation for the Midtown Manhattan office tower. The change in ownership structure leaves Fisher Brothers in control of the 43-story, one-million-square-foot property and actively searching for a new institutional partner to replace JPMorgan’s equity position.
Fisher Brothers has engaged a Newmark team to oversee the search and marketing effort for the incoming partner. Newmark professionals Adam Spies, Josh King, Adam Doneger, Marcella Fasulo and Avery Silverstein are leading the sales process for the incoming institutional investor. Their assignment focuses on recapitalizing the ownership structure around the existing Fisher Brothers stake in the tower.
The transaction at 605 Third Ave. follows a similar recapitalization strategy recently executed by Fisher Brothers at Park Avenue Plaza. In that prior deal, Vornado Realty Trust acquired a 49% stake, providing a template for partial interest sales to institutional partners at high-profile Manhattan office assets. The new effort at 605 Third Ave. is designed to bring in comparable long-term capital alongside Fisher Brothers’ existing position.
Originally developed by Fisher Brothers in 1963, 605 Third Ave. is a 43-story office building that is currently reported to be 84% leased. The ownership’s current business plan is centered on increasing rental rates as leases roll, with a stated target of approximately 60% income growth over the next five years. This strategy is tied to re-leasing and renewal activity as existing leases expire, with the goal of capturing higher rents over time.
Recent leasing traction at the property has supported this income growth plan. Fisher Brothers has announced that nearly 65,000 square feet of leases have been secured at 605 Third Ave. since April. According to the ownership, this activity includes five leases signed over the last three months, underscoring continued tenant interest in the building despite broader uncertainty in the office sector.
Ken Fisher, a partner at Fisher Brothers, stated that the recent deal flow demonstrates the continued strength of the Third Avenue corridor. He cited both new and existing tenant demand for high-quality office space as a key driver of leasing performance at the property. Those dynamics provide the backdrop for the recapitalization effort now underway as Fisher Brothers looks to align the tower’s ownership with a new institutional capital partner.
