Fisher Brothers To Buy Out JPMorgan’s Stake in Midtown Office

Fisher Brothers is turning to the Israeli bond market to buy out JPMorgan Asset Management’s stake in 605 Third Avenue.

The New York-based developer is seeking to raise about $100 million on the Israeli bond market as unsecured bonds. A British Virgin Islands company tied to Fisher Brothers filed a prospectus on the Tel Aviv Stock Exchange on Aug. 13, detailing its offering to prospective investors.

Fisher Brothers will use a portion of the proceeds to purchase JPMorgan’s stake in the 43-story, 1 million-square-foot tower. JPMorgan last month listed its 49 percent interest in the building, seeking a valuation of $425 million. If the deal closes, Fisher Brothers will only pay about $11.5 million for JPMorgan’s interest, which sits below the senior mortgage, according to the prospectus filed with the Tel Aviv Stock Exchange. 

The office tower is 84 percent leased with a $400 million mortgage.  

Fisher Brothers is also seeking to use the proceeds of the Israeli bond raise to pay for capital expenditures and leasing costs on its existing portfolio, and general working capital.

Fisher Brothers’ offering will test Israeli investors’ appetite for U.S. real estate in light of the recent collapse of Michael and David Shabsels’ Simad Holdings. Simad, which owned 30 U.S. summer camps, announced in May that it would default on its bonds, and about $34 million of bond funds were diverted to companies controlled by the owners. Bondholders, however, are expected to receive a full recovery. 

Another U.S. real estate firm, New York City-based GFI Capital, this month told one class of Israeli bondholders it could miss bond payments if it was unable to restructure its debt.

The Israeli bond market is attractive to American developers because it offers lower rates than traditional financing in the U.S. Fisher Brothers’ debt is expected to have a rate of 6 to 6.5 percent, according to a source familiar with the matter. Fisher Brothers is looking to raise the bonds as unsecured debt, meaning the debt is not backed by a lien of collateral on any properties. 

Israeli bonds are publicly traded on the Tel Aviv Stock Exchange. Privately held real estate companies are required to disclose financials and quarterly reports, often for the first time. 

Fisher Brothers disclosed it had $5.4 billion in assets, $220 million in net operating income, and $460 million in revenue at the end of 2025 in its initial filings with the Tel Aviv Stock Exchange. 

Fisher Brothers received a preliminary rating of ‘ilA+ by S&P Global Ratings Maalot, which is an investment grade rating.

The firm inked one of the largest office leases in the U.S. in 2023 when the law firm Paul, Weiss leased 765,000 square feet in a 20-year deal at Fisher Brothers’ 1345 Sixth Avenue in Midtown Manhattan. Financial firm Karbone signed a 20,000-square-foot lease at Fisher Brothers’ 605 Third Avenue earlier this year with an asking rent of $120 per square foot.

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