BXP has sold a 10.6% equity stake in the $2B trophy office tower it is building in Midtown Manhattan.
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Manhattan-based investment firm AVRS Partners, co-founded by a scion of the Safra banking family, acquired the stake in the 930K SF office tower going up at 343 Madison Ave., according to a release.
The Boston-based office giant is ramping up construction on the 46-story tower, which has reached the podium level, the New York Post reported this week. It is projected to deliver in 2029.
The equity injection from AVRS follows a $1.2B construction loan from a syndicate of investors led by Wells Fargo that closed in July and gives BXP extra financial flexibility with the development, according to a release.
The deal is the second partnership between BXP and AVRS, which also holds an interest in the General Motors Building at 767 Fifth Ave. through an affiliate. The GM Building is the REIT's largest and most valuable holding, valued at the end of 2025 at $3.7B, according to BXP's annual report.
“We are pleased and honored to expand our relationship with AVRS Partners through this investment,” BXP Chairman and CEO Owen Thomas said in a statement.
BXP may also choose to sell other minority stakes in the future, it said in the release. It retains control of the project and will collect customary fees as the development, property and leasing manager, according to the release.
AVRS was founded by Edmond Safra, the son of Banco Safra co-founder Moise Safra, Qatar Investment Authority alum Adnane Mousannif and investor Patrick de Picciotto in 2023. It invests in top-quality assets in the U.S. and Europe.
Seven of the 10 properties listed as part of its portfolio are in New York City, including stakes in Vanbarton Group’s residential conversion at 77 Water St. in the Financial District and in Brooklyn's tallest office tower.
AVRS has closed on a total of approximately $2.4B of deals since its launch, including $1.1B of equity deals, according to its website.
“BXP has been a valued partner to my family for more than a decade,” Safra said in a statement. “I'm honored that AVRS is now building on that relationship, and we look forward to the development of 343 Madison Avenue.”
The building is already 56% preleased after BXP struck a 150K SF deal with law firm McDermott Will & Schulte and a 275K SF agreement, including a 46K SF expansion option, with investor and insurance firm Starr at the start of this year.
BXP’s project is coming as high-quality office space in Manhattan is commanding record-breaking rents amid a supply shortage. Like Vornado and Ken Griffin’s 350 Park Ave., Related Cos.' 70 Hudson Yards and 625 Madison Ave., and SL Green's 346 Madison Ave., BXP's project is one of several new trophy office towers in the works as landlords seek to capitalize on soaring demand.
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