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Ivanhoe Cambridge puts News Corp HQ on the market

Canadian firm paid $1.7B for 1211 Sixth Avenue

1211 Sixth Avenue and Ivanhoe Cambridge’s Daniel Fournier
1211 Sixth Avenue and Ivanhoe Cambridge’s Daniel Fournier

Who wants to be Rupert Murdoch’s landlord? Ivanhoe Cambridge and its U.S. partner Callahan Capital Properties are looking to sell the News Corp.’s headquarters building at 1211 Sixth Avenue.

The 2-million-square-foot office tower is 99 percent leased and makes $98.3 million a year in net operating income, Real Estate Alert reported, meaning if it sold at a 5 percent cap rate it could fetch close to $2 billion. Eastdil Secured has the listing.

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Montreal-based Ivanhoe, the real estate investment arm of Quebec’s public pension fund manager, bought a 51 percent stake in the tower from Beacon Capital for $854.3 million in 2013. Last year it picked up the remaining 49 percent for another $857.5 million.

News Corp. and 21st Century Fox occupy 1.2 million square foot in the tower. The media giants considered a move in 2015 and even signed a letter of intent for a lease at Silverstein Properties planned tower 2 World Trade Center, but ultimately decided to renew instead and expand its current footprint. Its new lease runs until 2025. [REA] — Konrad Putzier

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