Two of Canada’s largest real estate investors are ramping up their activity in the New York office market, specifically in the Midtown South neighborhood. Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, has purchased a stake in 330 Hudson Street for $150 million from Beacon Capital Partners, while the Canadian Pension Plan Investment Board (CPPIB) has invested an additional $108 million in One Park Avenue through a joint venture with Vornado Realty Trust.
Ivanhoé Cambridge now holds a 49 percent interest in 330 Hudson, which is valued at approximately $304 million, according to data provider Real Capital Analytics. The purchase marks the firm’s fifth acquisition made through its strategic relationship with Chicago-based partner Callahan Capital Properties and brings its US office platform to more than $2.1 billion.
The 16-story, 467,000-square-foot office building has been transformed through a recently completed redevelopment. Located in the Hudson Square section of Midtown South, Ivanhoé Cambridge describes the Class A asset as “arguably the premiere office property in one of the most exciting live-work-play neighborhoods on Manhattan’s west side,” according to a statement.
“We are delighted with the addition of 330 Hudson to the Ivanhoé Cambridge/Callahan portfolio, as it exemplifies our strategy to build a high-quality office platform concentrated in top markets around the country,” said Tim Callahan, chief executive officer of Callahan, in the statement.
Separately, CPPIB has upped its stake in One Park Avenue, also located in Midtown South, through a joint venture with Vornado Realty Trust. The increase will give CPPIB a 45 percent interest in the office building, where it previously held an indirect stake of approximately 11 percent through its investment in Vornado Capital Partners, the REIT’s $800 million private equity real estate fund.
The joint venture values the 941,000-square-foot tower at $560 million, including the assumption of $250 million in debt. Vornado will continue to manage the 20-story building, which includes such tenants as Broadridge Financial Solutions and New York University, according to the property’s website.
“Our increased stake in One Park Avenue aligns with our US office strategy to acquire high-quality assets in key markets,” commented Peter Ballon, vice president and head of real estate investments for the Americas at CPPIB, in a release. “The property’s prime location and strong tenant base make this an attractive investment and diversify our holdings in Manhattan. We look forward to further expanding our relationship with Vornado as we continue to build our office portfolio in the US.”