Brookfield Asset Management is close to finalizing a deal that would give it a minority interest in a Manhattan Midtown South office tower.
It would be to acquire a 49 percent stake in 63 Madison Avenue for roughly $400 million, according to reporting from The Real Deal. The stake was sold by joint venture majority owners George Comfort & Sons, Jamestown and Loeb Partners.
In total, 63 Madison spans 866,400 square feet and sits between 27th and 28th Streets. Some major tenants at the 15-story building include CBS and New York Life Insurance. Also, American Eagle signed one of the biggest office leases in 2024 to take 338,085 square feet at 63 Madison.
Recently, the asset underwent renovation, which included a brand-new lobby and enhanced retail spaces anchored by Whole Foods Market.
Brookfield's anticipated acquisition comes at a hot time for major office sales in Manhattan. None have been bigger than RXR's close to $1.1 billion buy of 590 Madison Avenue in the borough's Plaza District, which The Real Deal reported in May. That's the largest New York City sale since Google's parent company, Alphabet, purchased 550 Washington Street for $1.97 billion in 2022, according to the news outlet. However, Blackstone came close to RXR with its 49 percent stake in 1345 Avenue of the Americas, which required an $850 million CMBS loan, as reported by Traded. And this month, the Commercial Observer reported that Tishman Speyer snagged 148 Lafayette Street at a 17 percent discount.
That said, office leasing activity is continuing to slow in Manhattan. The 3.13 million square feet recorded in May represented a seven percent month-over-month dip and was the lowest number seen since December 2024, according to a report from Colliers. On the bright side, the category was up by 5.2 percent year-over-year and by 15.9 percent when compared to the 10-year monthly median.
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