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Blackstone is about to acquire a stake in West Manhattan: Report

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 acquire a stake in one of New York City’s most prominent office projects.

The Wall Street Journal reports that the company is in advanced discussions to buy a 49% stake in Brookfield Asset Management’s One Manhattan West. The deal will value the office building at more than $2.85 billion.

People familiar with the matter told the Journal a share purchase agreement could be reached in the coming days.

Bloomberg previously reported that Cushman & Wakefield is advising Brookfield in attract interest in the sale of shares.

70-storey office tower including biggest sponsorship deal of 2020 when Brookfield and Qatar Investment Authority hit $1.5 billion in September 2020 through the CMBS marketplace. Two mezzanine loans totaling $300 million raised the funding package to $1.8 billion.

An August 2020 rental roll of the property reveals a weighted average lease term for tenants of more than 17 years. Law firm Skadden Arps and accounting firm Ernst & Young combined to generate more than 58% 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 principal tenants, along with three branches in Brookfield. The average facility rent is about $91 per square foot.

The deal to buy shares in One Manhattan West is familiar territory for both companies. In 2017, Blackstone acquired a 49% stake in One Liberty Plaza in Brookfield.

Before the pandemic, two companies were reported in the negotiations on a sale of a 2.3 million-square-foot office tower in the Financial District, hoping to raise between $1.6 billion and $1.7 billion in a single sale. It is unclear if the companies are still aiming to sell the building.

[WSJ] – Holden Walter-Warner

https://therealdeal.com/2021/12/17/blackstone-closing-in-on-one-manhattan-west-stake/ Blackstone is about to acquire a stake in West Manhattan: Report

Dais Johnston

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