RXR Acquires 49% Stake in 1211 Avenue of the Americas
Deal News | Jan 09, 2025 | CDPQ
RXR, a major real estate company in New York, has acquired a 49% stake in 1211 Avenue of the Americas from Ivanhoé Cambridge, which is part of CDPQ's global real estate group. The partnership plans to invest over $300 million to modernize the iconic office building, emphasizing a future-ready redesign to attract top-tier tenants. This includes a revamped multi-tenant lobby and plaza, new amenities like conference rooms and a wellness center, and RXR will implement its RXO program to boost tenant satisfaction. Additionally, a new lease with FOX and News Corp secures much of the building’s occupancy, while over 600,000 square feet will become available in 2028. This represents strategic growth and conviction in the resiliency of New York City's office market by both RXR and Ivanhoé Cambridge.
Sectors
- Real Estate
- Investment
Geography
- United States – The transaction and ongoing project occur in New York City, one of the leading global markets for real estate.
- Canada – Ivanhoé Cambridge, the selling entity, is part of CDPQ, which is based in Canada.
Industry
- Real Estate – The article is focused on the acquisition and management of a commercial real estate property, involving significant investment in building modernization and tenant experience.
- Investment – Highlights a major investment transaction between RXR and Ivanhoé Cambridge, showcasing strategic capital allocation in New York City's real estate market.
Financials
- $300 million – Investment for building modernization and enhancement in the 1211 Avenue of the Americas property.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| RXR | Buyer | Company | A fully integrated real estate company and one of the largest owners of commercial and residential properties in the New York region. |
| Ivanhoé Cambridge | Seller | Company | A global real estate group that is part of CDPQ, involved in the sale of its 49% stake in 1211 Avenue of the Americas. |
| CDPQ | Parent company of Seller | Company | A major institutional investor managing funds primarily for public and parapublic pension and insurance plans. |
| FOX and News Corp | Tenant | Company | Secured lease occupancy for about 55% of the building through 2042. |
| Strategic Capital Alliance | Advisor | Company | Advised RXR on the transaction. |
| Newmark | Advisor | Company | Advised RXR on the transaction. |