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Key Takeaways – Fisher Brothers is raising roughly $100 million in unsecured Israeli bonds, partly to buy out JPMorgan’s 49 percent stake in 605 Third Avenue. – JPMorgan sought a $425 million valuation for its stake, but Fisher Brothers will pay about $11.5 million since the interest sits below the building’s $400 million mortgage. – The offering tests Israeli investor appetite for U.S. real estate after recent bond troubles at Simad Holdings and GFI Capital rattled the market
Fisher Brothers is turning to the Israeli bond market to buy out JPMorgan Asset Management’s stake in its Midtown tower at 605 Third Avenue, according to The Real Deal. A British Virgin Islands entity tied to the New York-based developer filed a prospectus on the Tel Aviv Stock Exchange on Aug. 13, seeking to raise about $100 million in unsecured bonds. A Discount Deal JPMorgan listed its 49% interest in the 43-story, 1-million-square-foot tower last month.
It sought a $425 million valuation. But the stake sits behind the building’s $400 million senior mortgage. As a result, Fisher Brothers will pay only about $11.5 million for the interest if the deal closes.