Blackstone Is Selling NYC Skyscraper for $640 Million

Blackstone Group LP agreed to sell a Manhattan skyscraper for $640 million to a New York-based real estate investment firm, according to a person with knowledge of the transaction, another sign that commercial deals in the borough may be starting to pick up.

The firm, Savanna, is in contract to acquire the 34-story office tower at 5 Bryant Park, said the person, who asked not to be identified because the deal hasn’t been announced. Representatives for Blackstone declined to comment. Calls to Savanna seeking comment weren’t immediately returned. The agreement was reported earlier Monday by the Real Deal.

The transaction provides a benchmark for Manhattan property investors in a sluggish market and may be a sign of relief after two consecutive years of declining activity. Through Feb. 23, there were $3.67 billion in sales of commercial properties south of 96th Street, compared with $2.63 billion in the first two months of 2017, according to brokerage Eastern Consolidated.

Blackstone acquired 5 Bryant Park, also known as 1065 Avenue of the Americas, as part of its joint purchase of Trizec Properties Inc. in 2006 with Brookfield Properties Corp. It bought the building in full in 2011, according to property records. The building overlooks Bryant Park, a popular public space bordering the Beaux-Arts flagship building of the New York Public Library.

— With assistance by David M Levitt

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