Ivanhoe Cambridge puts News Corp HQ on the market

Canadian firm paid $1.7B for 1211 Sixth Avenue

New York /
Jun.June 28, 2017 08:30 AM

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.

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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