BXP closes sale of 10.6% stake in 343 Madison Ave. to AVRS Partners

BXP closed the sale of a 10.6% equity interest in the development of 343 Madison Ave. in Midtown Manhattan to AVRS Partners, a New York-based real estate investment firm, Connect CRE reported. Terms were not disclosed, and the 46-story office project is valued at $2 billion.

An affiliate of AVRS is already a joint venture partner with BXP in the General Motors Building at 767 Fifth Ave. AVRS now holds an interest in two of the REIT's Manhattan properties, according to Connect CRE.

Applied to the $2 billion valuation, the 10.6% stake implies a gross value of roughly $212 million, but the report does not say what AVRS paid. The interest is a minority position, which suggests BXP keeps the bulk of the equity in a tower it is still developing.

Owen Thomas, BXP's chairman and CEO, said the project "demonstrates the strength of BXP's development platform and our ability to execute complex projects that create value for our shareholders and joint venture partners." The tower is substantially pre-leased and on track for delivery on time and on budget, he said, adding that BXP is "pleased and honored to expand our relationship with AVRS Partners through this investment."

BXP said it may sell additional minority interests in the project in the future. The report does not say how large those sales might be or when they might occur.