David Werner buys 49% stake in 605 Third Avenue from J.P. Morgan Asset Management

David Werner has acquired a 49 percent stake in 605 Third Avenue, a 43-story, 1 million-square-foot Midtown office tower, and now owns the building alongside Fisher Brothers, Commercial Observer reported, citing a source. The Real Deal first reported the transaction.

The seller of record was J.P. Morgan Asset Management, Fisher Brothers' previous partner at the property. Werner's price was not disclosed. The 49 percent interest was listed in July at a $425 million valuation, though the listing did not specify whether that figure covered the stake or the whole building.

Fisher Brothers had tried to buy the stake itself, using proceeds from an Israeli bond offering it later withdrew. The firm pulled the offering after failing to raise interest from investors overseas, citing rising interest rates and changed market conditions, The Real Deal reported. It had hoped to raise about $100 million in unsecured bonds, to be used for the stake purchase and for capital expenditures and leasing costs across its portfolio.

Werner will keep the tower as offices, with no conversion plans, according to the source. Tenants include the law firms Hodgson Russ and Katsky Korins and Informa. This is his second traditional Midtown office purchase in the past year, following the $270 million acquisition of One Dag Hammarskjöld Plaza last December.

Newmark's Adam Spies, Joshua King, Adam Doneger, Doug Harmon, Marcella Fasulo and Avery Silverstein brokered the deal, Commercial Observer reported. Fisher Brothers declined to comment, according to the outlet.