Stake Sale Values News Corp’s 6th Ave HQ at $1.2B
Ivanhoé Cambridge has sold a 49% stake in the 6th Avenue building that houses the headquarters of media mogul Rupert Murdoch’s News Corp and 21st Century Fox. Located at 1211 Avenue of the Americas, the sale to RXR Realty reportedly values the roughly 2 million-square-foot tower at $1.2 billion. Plans to launch a $300 million-plus upgrade of the building built in 1973, which was promised as part of the lease extension agreement, will feature a “reimagined” lobby and revitalized plaza, as well as a new amenity center, conference rooms, and a wellness center according to statements by RXR. In 2023, News Corporation extended its leases, securing approximately 55% of the building’s occupancy through February 2042, the deal also includes three 5-year renewal options. However, in 2028, law firm Ropes & Gray will be vacating it’s approximately 300,000-square-foot space upon relocating to 1285 Avenue of the Americas, reports indicating that it will create a near opportunity for a ‘building-within-a-building’ offering of “more than 600,000 square feet of contiguous premium space.” The structure of the transaction will result in RXR acquiring 49% of the building’s $1.035 billion CMBS debt provided by JPMorgan Chase in 2015 and shouldering 49% of the overhaul costs. The new partnership will also establish RXR as the new building operator, bringing the firm’s “signature RXO program” — dedicated hospitality team to offer programs such as events at the lobby.