Stake in 1221 Sixth Avenue up for grabs: sources

Rockefeller Group, CPP own McGraw-Hill Building

New York /
Apr.April 20, 2016 04:15 PM

Some of the city’s biggest real estate investors are making a play for a minority stake in 1221 Sixth Avenue, also known as the McGraw-Hill Building, sources told The Real Deal.

Rockefeller Group owns a 55 percent stake in the 51-story, 2.65 million-square-foot office tower, while Canada Pension Plan owns about 45 percent, according to data from Real Capital Analytics. CPP acquired its stake from SL Green Realty in 2010 for about $576 million, and it is this stake that sources say is being shopped around.

At the time of the CPP-SL Green deal, the building was valued at about $1.28 billion, or just over $490 per square foot. It is likely to be far more valuable today. The property is anchored by law firm White & Case, and also counts Comcast and Morgan Stanley among its tenants. Rents are in the mid-$80s per square foot, according to CoStar Group data. To compare, Scott Rechler’s RXR Realty is in contract to pay $1.7 billion for nearby 1285 Sixth Avenue, which has about 1.61 million square feet.

Among those gunning for the stake is Invesco Real Estate, according to sources. The Dallas-based private equity shop, a subsidiary of Invesco Ltd., has about $50 billion in assets under management, and has been active in the New York market recently. It paid SL Green $222 million for an 80 percent stake in 131 Spring Street in July, and bought 139 Spring Street for $112 million in January.

Representatives for Rockefeller and CPP didn’t respond to requests for comment. Representatives for Invesco declined to comment.

Kyna Doles contributed reporting.


Related Articles

arrow_forward_ios
(iStock/Illustration by Kevin Rebong for The Real Deal)
“Brace yourselves”: Residential agents prepare for return of foreign buyers
“Brace yourselves”: Residential agents prepare for return of foreign buyers
First we take Manhattan: Inside Reuben Brothers’ NYC shopping spree
First we take Manhattan: Inside Reuben Brothers’ NYC shopping spree
First we take Manhattan: Inside Reuben Brothers’ NYC shopping spree
Guillermo Lasso and the Asia Brickell Key condo in Miami
Ecuadorian president’s alleged Florida real estate ties raise questions
Ecuadorian president’s alleged Florida real estate ties raise questions
Hudson Yards (iStock)
EB-5 program set to expire at the end of June
EB-5 program set to expire at the end of June
Centrale at 138 East 50th Street and Ceruzzi president Arthur Hooper (The Centrale NYC, Hooper via Sasha Maslov/Illustration by Kevin Rebong for The Real Deal)
Korean lender sues for $40M over Ceruzzi condo mezz loan
Korean lender sues for $40M over Ceruzzi condo mezz loan
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
Stockbridge managing director Terry Fancher (Photos via Stockbridge)
Stockbridge and South Korean firm strike $2B warehouse deal
Stockbridge and South Korean firm strike $2B warehouse deal
The Internal Revenue Service is going after foreign real estate investors as part of a broader sweep to collect revenues amid the pandemic.  (iStock)
“There’s a lot of money to be made”: IRS targets foreign real estate investors
“There’s a lot of money to be made”: IRS targets foreign real estate investors
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...