BXP Sells 10.6% Stake in $2.0B 343 Madison Avenue Tower to AVRS Partners
BXP, Inc. (NYSE: BXP) announced Oct. 14 that it has closed the sale of 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 that acquires real estate assets across the United States and Europe.
The roughly $2.0 billion project is a planned 46-story office tower of approximately 930,000 square feet next to Grand Central Terminal. BXP, which describes itself as the largest publicly traded developer, owner and manager of premier workplaces in the United States, said it retains full decision-making authority over the development.
BXP Retains Control of 343 Madison Avenue
BXP serves as development, property and leasing manager for the project and earns customary fees for those services. The company said the transaction provides additional financial flexibility while preserving substantial ownership and control of the project and the opportunity to participate in its long-term value creation.
BXP said the sale generates additional capital for the development and reduces the company's required equity commitment. It also said it may sell additional minority interests in the project in the future.
"343 Madison Avenue 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," said Owen Thomas, Chairman and Chief Executive Officer of BXP. "With the project already substantially pre-leased and on track for delivery on time and on budget, we are building a premier workplace that reflects the needs of today's leading companies. We are pleased and honored to expand our relationship with AVRS Partners through this investment."
AVRS Partners Expands Relationship With BXP
The transaction expands BXP's existing relationship with AVRS Partners, which now holds an interest in two of BXP's most significant properties in New York City. An affiliate of AVRS is also a joint venture partner with BXP in the General Motors Building in New York.
"BXP has been a valued partner to my family for more than a decade," said Edmond M. Safra, Founding Partner of AVRS. "I'm honored that AVRS is now building on that relationship, and we look forward to the development of 343 Madison Avenue."
Applying the 10.6% interest to the stated $2.0 billion development cost implies a value of roughly $212 million, before accounting for project-level debt or valuation adjustments. The transaction is an equity sale rather than a sale of a specific portion of the building.
Project Details, Financing and Leasing
Designed by Kohn Pedersen Fox, 343 Madison Avenue will offer a hospitality-forward amenity program, direct access to Grand Central Madison and what BXP described as market-leading sustainability features. The tower is under construction and is expected to be completed in the third quarter of 2029. The stated cost implies roughly $2,150 per square foot.
The project's capitalization includes a $1.2 billion construction loan that closed in July 2026, equal to about 60% of the stated development cost.
The tower is approximately 56% pre-leased, including leases with Starr and McDermott Will & Schulte. BXP said additional executed letters of intent, if converted to leases, would bring pre-leasing to approximately 70%. Letters of intent are not binding leases. The project is positioned to be one of the few newly delivered premier workplace towers in Midtown Manhattan over the next several years, according to BXP.
Market Context
The partial-equity sale comes as BXP reports improving but incomplete office recovery. In the second quarter of 2026, BXP's total portfolio was 88.4% occupied, up 100 basis points from the first quarter. Its central business district portfolio was 90.7% occupied and 93.6% leased, a gap indicating that some signed space had not yet begun generating GAAP rental revenue.
BXP reported second-quarter 2026 revenue of $895.7 million, up 3.1% year over year, while net income declined to $68.6 million, or $0.43 per diluted share, from $89.0 million, or $0.56 per share, in the prior-year quarter.
As of June 30, 2026, including properties owned by unconsolidated joint ventures, BXP's portfolio totaled 51.1 million square feet across 164 properties, including six under construction or redevelopment. The company is concentrated in Boston, Los Angeles, New York, San Francisco, Seattle and Washington, D.C.
BXP's release includes forward-looking statements and cites risks including the company's ability to complete the project within budget, on schedule or at all, the uncertainties of real estate development, and its ability to enter into additional leases on favorable terms or on the contemplated schedule.
Sources
BXP, Inc. press release, Oct. 14, 2026: https://investors.bxp.com/news-releases/news-release-details/bxp-completes-initial-sale-partial-interest-343-madison-avenue