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Ivanhoé Cambridge acquires stake in NYC office

In an effort to expand its New York portfolio, the real estate investment arm of the Caisse de dépôt et placement du Québec has purchased a majority interest in a Manhattan office building for $850 million.

Ivanhoé Cambridge, the real estate subsidiary of Caisse de dépôt et placement du Québec, has acquired a 51 percent stake in 1211 Avenue of the Americas. The $850 million transaction is part of the Montreal-based firm’s strategy to expand its presence in major US cities like New York.

“This investment exemplifies one of the priorities set out in our strategic plan: to build our office building portfolio in the United States by growing a critical mass of assets in key markets such as New York City,” said Bill Tresham, president of global investments at Ivanhoé Cambridge, in a statement.

Ivanhoé Cambridge purchased the managing member interest from Boston-based real estate investment firm Beacon Capital Partners. Located between 47th and 48th streets and adjacent to Rockefeller Center, the 45-story Class A office property totals approximately 2 million square feet. Key tenants in the LEED Silver-certified building include Twenty-First Century Fox subsidiary News America, global law firm Ropes & Gray and insurer Axis Reinsurance.

The deal brings Ivanhoé Cambridge’s investments in the Manhattan office and multifamily sectors to more than $3 billion. Through partial ownership interests, the firm has invested in four New York office properties totaling more than 6 million square feet and 16 multifamily properties totaling 2,226 units. 

The transaction also marks Ivanhoé Cambridge’s third acquisition made as part of its strategic relationship with Chicago-based Callahan Capital Properties. In a partnership established late last year, Callahan sources investment opportunities and offers asset management services for the Canadian investor. Callahan is not an investor in the deal.

Ivanhoé Cambridge’s last Manhattan transaction was the acquisition of a 49.9 percent ownership interest in 1411 Broadway in November for approximately $360 million. More recently, the firm made headlines for purchasing its partner’s 50 percent stake in Montreal’s Place Ville Marie for approximately $400 million, giving it full ownership of the complex. In June, the firm acquired a Class A office tower in Seattle, also from Beacon, for approximately $390 million.