Stake in 1221 Sixth Avenue up for grabs: sources

Rockefeller Group, CPP own McGraw-Hill Building

TRD 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

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Here are the leading countries planting flags in Manhattan commercial real estate

Here are the leading countries planting flags in Manhattan commercial real estate

Foreign investment in US homes plummeted to $78B over the past year

1271 Sixth Avenue and Rockefeller Group CEO Daniel Moore (Credit: Rockefeller Group)

Investment bank takes two full floors at Rockefeller’s 1271 Sixth Ave

What China’s warning to students studying in the US means for real estate

With Chinese investment drying up, EB-5 debt isn’t nearly as cheap

arrow_forward_ios