A group led by one of China's highest profile developers is in advanced discussions to buy a 40% stake in the General Motors Building in Manhattan, a 50-story tower that is one of the most valuable buildings in the U.S., according to real-estate executives with knowledge of the talks.

If completed, the deal by the family of Zhang Xin, principal of office landlord Soho China Ltd. (0410.HK), and its partners would value the tower at about $3.4 billion, the people said. That would make it one of the largest acquisitions of a single U.S. property by a Chinese investor.

Ms. Zhang declined to comment on the deal. The purchase of the GM building stake would be made by her family and not by Soho China, the real-estate executives said.

The property, which overlooks Central Park and the Plaza Hotel, includes such tenants as Estee Lauder Cos. (EL) and the law firm Weil Gotshal & Manges. It currently has about $1.6 billion in debt held by third parties as well as another $450 million in debt held by the existing owners.

The sellers include the sovereign wealth funds of Kuwait and Qatar--both of which invested through a Goldman Sachs Group Inc. (GS) fund--and an investor affiliated with the ruling family of Dubai. They tapped commercial brokerage CBRE Group Inc. (CBG) to market the stake.

The group that is negotiating with Ms. Zhang acquired its stake in 2008 when it became partners with Boston Properties Inc. (BXP) to buy the tower in a deal that valued it at $2.8 billion.

Boston Properties currently controls the building and would keep its 60% stake if the sale to Ms. Zhang is finalized.

(Jeffrey Ng contributed to this article.)

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