Ivanhoé Cambridge now has full ownership of a 44-story Manhattan office building after the firm purchased the remaining minority stake last week for $913 million.
Boston-based Beacon Capital Partners bought 1211 Sixth Avenue in June 2006 with the now-shuttered financial services firm Lehman Brothers for $1.5 billion, according to real estate data provider Real Capital Analytics (RCA). In October 2013, Ivanhoé Cambridge picked up a 51 percent stake in a deal valuing the 44-story building at $1.75 billion. Last week, the group announced it purchased the remaining 49 percent stake from Beacon, valuing the building at $1.8 billion, according to RCA. The real estate arm of Caisse de dépôt et placement du Québec completed the transaction with its US partner, Callahan Capital Properties.
Built in 1973 and renovated in 1995, the building was 92 percent occupied as of this month, according to RCA. The biggest tenant, News Corporation, has a 1.1 million square foot lease that expires in November 2020.
Ivanhoé Cambridge began investing in Manhattan in 2002, according to RCA. Last year, the investment firm partnered with The Blackstone Group to buy Stuyvesant Town–Peter Cooper Village, an 80-acre property with multifamily towers home to more than 30,000 residents, for $5.3 billion.
“1211 Avenue of the Americas is a significant asset in our 5.6-million-square-foot New York office portfolio and exemplifies our long-term approach towards owning quality assets in Midtown Manhattan,” said Tim Callahan, Callahan’s chief executive, in a statement last week. “With unparalleled transportation options and the largest concentration of retail, dining and cultural amenities Manhattan has to offer, Midtown continues to be among the most dynamic markets in which to live, work and play.”
Ivanhoé Cambridge had about C$55 billion ($42.9 billion; €38 billion) in total assets as of December 31, according to its website.