Ivanhoé Cambridge, the real estate unit of Canadian pension fund Caisse de dépôt et placement du Québec, has sold a 49% stake in the New York City building at 1211 Avenue of the Americas, also known as the News Corp. Building, to commercial real estate firm RXR. Financial terms were not disclosed.
The sale of its stake in the News Corp. building is the first major real estate deal announced by Ivanhoé Cambridge since CDPQ combined the firm with its other real estate subsidiary, Otéra Capital, less than a year ago.
As part of the acquisition, RXR and Ivanhoé Cambridge announced they will invest more than $300 million in the 2-million-square-foot building through a “modernization program” that will include a renovated multi-tenant lobby and plaza. According to the companies, the improvements will also include a new amenity area, conference rooms and a wellness center.
“This initiative is part of our strategy to redefine the workplace service offering to meet the evolving needs of top-tier tenants in the country’s most sought-after markets,” said Rana Ghorayeb, executive vice president and head of real estate for CDPQ and Ivanhoé Cambridge, in a statement.
The building is 55% occupied by Fox News Channel and News Corp., both of which have signed leases that extend their stay there until 2042. However, law firm Ropes & Gray LLP, which has more than 500 employees in its New York office, is leaving the building in 2028 to move three blocks to another office space owned by RXR. The real estate firm said the departure of Ropes & Gray will leave more than 600,000 square feet of office space.
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Tags: Caisse de dépôt et placement du Québec, Ivanhoé Cambridge, Real Estate, RXR