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The Capital AgendaThe Wrap

BXP sells 10.6% of 343 Madison tower to AVRS Partners

The 46-story Midtown project is 56% pre-leased and has $1.2 billion in construction financing, Commercial Observer reported.

At a glance

25-second brief
  • BXP sold a 10.6% stake in its planned $2 billion 343 Madison Avenue office tower to AVRS Partners, Commercial Observer reported.

  • Moinian is set to add 1.9 million square feet of Hudson Yards office, though Commercial Observer's summary of its sit-down with the developer names no start date, address or anchor tenant.

  • Pearlmark lent Empira $81 million for the 160-unit Aurelian apartment tower in Coral Gables, a construction loan CBRE arranged.

BXP sold a 10.6% stake in its planned $2 billion 343 Madison Avenue office tower to AVRS Partners, Commercial Observer reported. The 46-story Midtown project is 56% pre-leased and has secured $1.2 billion in construction financing.

The disclosed figures frame what a minority position in Manhattan office development is priced against: a building more than half pre-leased and $1.2 billion of construction debt already secured. That combination, rather than the modest size of the stake, is likely what made the equity sale placeable. The coverage does not say what AVRS paid for the 10.6%, so no price for the slice is disclosed, only the tower's stated $2 billion valuation.

Moinian is set to add 1.9 million square feet of Hudson Yards office, though Commercial Observer's summary of its sit-down with the developer names no start date, address or anchor tenant. The same outlet describes Manhattan as desperate for new stock. A 1.9 million-square-foot addition is the kind of project that would answer that appetite; the summary carries none of the detail — anchor commitment, construction financing, timing — a partner or lender would price against. That is a gap in the available account, not evidence about the project's status.

Construction debt for apartments

Pearlmark lent Empira $81 million for the 160-unit Aurelian apartment tower in Coral Gables, a construction loan CBRE arranged. It follows an earlier $111.3 million Miami apartment loan for Empira in Brickell; the coverage does not name that lender.

908 Group broke ground on the 219-unit Chapter House UF with a fourth construction loan from Pacific Life, and the project is the developer's fifth joint venture with Batson-Cook Development. Four construction loans from the same life company to the same developer is a relationship, not a one-off quote.

Merchants Capital secured a $30.7 million Freddie Mac forward loan for the 227-unit Central at Old Southside in Indianapolis, developed by The Annex Group. The coverage schedules construction to start in 2026 and finish in 2028 and identifies the project as low-income housing tax credit financed.

PCCP lent $41 million to refinance Foulger-Pratt's Tenney North Park in San Diego, a 125-unit building completed in 2025; the senior loan replaces construction debt on it. Pearlmark's loan funds a start; PCCP's retires debt on a finished building.

A build-to-rent window and a Nashville site

FHA opened its insured financing programs to build-to-rent projects, requiring a single uninterrupted site operated as one property across the new construction and acquisition or refinancing programs. Read literally, that condition keeps scattered-site portfolios out.

Hamilton and Clarion acquired the Bridgestone plant site for a 1.5 million-square-foot industrial park, Connect CRE reported: 135 acres at 1201 Bridgestone Parkway in La Vergne, ten buildings, with demolition beginning immediately.

The BXP transaction is the one here where an equity partner took a share of a specific project with a stated valuation: 56% pre-leased, $1.2 billion of construction debt, 10.6% sold against a $2 billion valuation. Whether the next Manhattan office joint venture clears at a similar pre-leasing threshold is the open question the sale leaves.

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Sources & further reading
Commercial Observer (via internal newsroom data basis and pack digest) · Connect CRE (via pack digest)
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