RXR has purchased a 49% ownership stake in the headquarters of News Corporation, located at 1211 Ave. of the Americas. The property, valued at $1.2 billion and situated in Midtown Manhattan, was previously owned by Ivanhoé Cambridge – a real estate group under CDPQ.
Together with Ivanhoé Cambridge, RXR plans to invest over $300 million into the two-million-square-foot office tower for its repositioning project. This includes redesigning the lobby for multiple tenants and revitalizing the plaza.
The building currently has a lease agreement with FOX and News Corp., securing occupancy of approximately 55% until 2042 when it expires in 2023. However, there is an opportunity for potential tenants as a law firm will be vacating their space within the building by 2028 – offering over half-a-million square feet of premium contiguous space.
According to Scott Rechler – chairman and CEO of RXR – this partnership with Ivanhoé Cambridge showcases that well-located high-quality office buildings can thrive even after pandemic challenges are overcome.
Adam Spies and Doug Harmon from Strategic Capital Alliance and Newmark Group Inc advised RXR on this acquisition deal.
