Tentative Anchor Tenant for 343 Madison Ave Revealed

Back in August, a press release by developer BXP announced the execution of “a letter of intent with a prestigious, investment grade financial institution to anchor 343 Madison Avenue and occupy 30% of the building, in the lower-middle section of the tower.” More recently, news headlines identified the prospective tenant as global insurance and investment firm C.V. Starr. In July, longtime partner Norges Bank Investment Management unexpectedly decided to back out of the project, selling its 45% stake back to BXP for $43.5 million, which per a BXP spokesperson was equivalent to the sum the sovereign wealth fund had invested in the project according to news reports at the time. However, solid improvements in Manhattan’s office marked led to decisions by BXP to move forward, breaking ground in July of the approximately 930,000 square-foot development that was initially to be built on speculation. In the interim of BXP securing a new partner, the REIT reportedly plans to “cut its dividend by 30% [and] sell suburban office buildings” to help pay the price of estimated $2 billion development.

Source:    https://www.crainsnewyork.com/real-estate/developer-bxp-nears-big-lease-343-madison-ave