“Read all about it!” Newssha building A new co-owner has been officially decided.
RXR acquired a 49% stake in ivanhoe cambridgelocated in the building of 1211 Avenue of America.
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bloomberg first reported the news.
Newmark (NMRK)‘s adam spies and doug harmon has welcomed RXR as a new partner to manage and operate the property with an entirely new business plan, and will represent RXR in transactions. Hines Previously, I managed buildings.
The business plan includes a major repositioning of the building. RXR plans to invest an additional $300 million in the 2 million-square-foot property located between 47th and 48th Streets in midtown Manhattan, according to a release from the owners Wednesday evening.
RXR’s investment as a new partner represents 49% of common stock and 49% of capital investment. The current value of the building is $1.2 billion, sources told Commercial Observer.
The renovations include a new multi-tenant lobby and upgraded plaza, as well as a new amenity center and meeting rooms.
“This transaction confirms our strong belief in New York City’s office market and its unparalleled resilience. While some have looked down on New York City and declared that the era of offices is over, we are I never wavered in my belief.” scott rechler RXR Chairman and CEO said in a release.. “By partnering with Ivanhoe Cambridge to transform this iconic tower into a workplace that meets the demands of today’s global businesses, we are demonstrating that well-located, high-quality office buildings can thrive in a post-pandemic world. Masu.”
Rupert Murdoch‘s fox news and sister company news corporation is the building’s anchor tenant, occupying 55 percent of its space. These two made headlines with, no joke: Renewal of leases totaling 1.2 million square feet CO reported in January 2023.
Other tenants include: disney, wells fargo and dow jones. axis insurance I left the premises for the nearby area. 1166 Avenue of the Americas With a 40,240 square foot lease signed two years ago, CO. reported at that time.
rope & gray Last November, the company announced it would also vacate 300,000 square feet of space at the facility. The exit creates a large hole, and at the same time,This is a rare opportunity to offer 600,000 square feet of contiguous space to a new tenant in “one of New York City’s most sought-after neighborhoods,” according to the release. Ropes & Gray will be moving to another building in RXR next. 1285 Avenue of the Americas.
As new owner, RXR will be responsible for 49% of 1211 Avenue of the Americas’ $1.04 billion commercial mortgage-backed securities (CMBS) loan due in August of this year. , this is a big change. Rechler said. bloomberg He plans to discuss the maturing debt with the building’s lender.
Huge CMBS financing started in 2015. Fitch rating Last year, there were concerns about the 45-story tower’s refinancing potential, its outstanding debt, and Fitch’s debt-to-total debt service coverage ratio (then 0.97x).
Subsidiary of Ivanhoe Cambridge Company CDPQI got it. 51% interest Acquired remaining avenue in 2013 at 1211 Avenue of the Americas 49% of the stock In 2016.
“We are thrilled to have RXR as a partner and operator of 1211 Avenue of the Americas, a landmark property that Ivanhoe Cambridge has owned for more than a decade.” Lana Golayebsaid Ivanhoe Cambridge Executive Vice President and Head of Real Estate in a release. “Through this partnership, we intend to leverage RXR’s expertise in the New York real estate market and invest in transforming one of New York’s most iconic buildings. It is consistent with our strategy to redefine workplace products to meet the evolving needs of leading occupiers in a given market.”
Henry Winterstern of Strategic Capital He was also an advisor to RXR on this transaction.
Kathy Cunningham can be contacted at: [email protected] Andrew Cohen can be contacted at: [email protected]
