Invesco scoops up $1.2 billion of office stakes

Invesco Real Estate has been on an office shopping spree.

The Atlanta-based real estate firm agreed to buy a 45 percent stake in 1221 Avenue of the Americas (pictured), an office tower in midtown Manhattan, for about $1.1 billion earlier this month. In a smaller transaction, Invesco also picked up a 50 percent stake in 100 Congress Avenue, a 412,000 square foot building in Austin, for about $125 million.

A spokesperson for Invesco confirmed the acquisitions but declined to comment further. Both properties are over 90 percent leased, according to real estate data provider Real Capital Analytics (RCA).

Invesco's New York deal underscores the rise in Manhattan property prices. The firm's acquisition of a minority stake from the Canada Pension Plan Investment Board (CPPIB) values the 50-story building at $2.3 billion. By contrast, CPPIB’s stake, acquired in 2010, valued the property at $1.3 billion. New York-based Rockefeller Group, owned by Mitsubishi Group, was the original full owner of the building before selling a 45 percent stake in 2003 to SL Green, which went on to sell its interest to CPPIB in 2010. Rockefeller continues to retain its 55 percent interest in the property, according to RCA. Built in 1972, the lobby was recently renovated for $30 million. Major tenants include Societe Generale and Columbia House, according to RCA.

Meanwhile, in Austin, Invesco bought its stake in 100 Congress Avenue from MetLife Real Estate Investors, which is retaining its 50 percent stake, according to RCA. Built in 1986, the lobby of this property was also recently renovated. Law firm Jackson Walker is the property’s anchor tenant.