Nine months ago, RXR bought a 49 percent stake in 1211 Sixth Avenue in Midtown Manhattan. Scott Rechler worked quickly to recapitalize the prominent office building.
Now, RXR has secured a $1.45 billion recapitalization for the property, the Commercial Observer reported. The deal includes a three-year extension on a $1 billion debt originated by Apollo Global Management, which will see the maturity date extended to June 2028.
The recapitalization also includes a fresh injection of equity from a plethora of investors RXR is already familiar with, such as the Baupost Group, King Street Capital Management, Criterion Real Estate Capital, Abrams Capital and Liberty Mutual. The equity is expected to range from $250 million to $400 million.
As part of the recapitalization, Fox News is expected to receive $130 million in tenant improvements. Another $110 million is anticipated to improve space recently vacated by Ropes & Gray, while $61 million will go towards capital expenditures and $54 million will be for additional tenant improvements.
A Newmark team including Adam Spies, Doug Harmon and Marcella Fasulo negotiated the recapitalization.
RXR acquired its stake in the 45-story, 1.8-million-square-foot building in January. Canadian pension fund Caisse de dépôt et placement du Québec, the parent company of Ivanhoé Cambridge, owns the majority stake.
Ivanhoé and its then-partner Callahan Capital Properties paid $1.7 billion to purchase the property, a deal that unfolded over two separate stake sales in 2013 and 2016.
Fox and News Corp. agreed to an extension in January 2023 to stay at the property and continue to occupy 1.2 million square feet until 2042. The extension was announced as two separate deals: Fox’s 670,000-square-foot deal would begin in December 2025, while News Corp.’s 485,000-square-foot extension would start two years later.
But Ropes & Gray signed a deal to relocate, freeing up 300,000 square feet at the building, which has an 88 percent occupancy rate.
— Holden Walter-Warner
Read more
RXR, Ivanhoé Cambridge extend $1B mortgage at 1211 Sixth Avenue
Ivanhoe Cambridge puts News Corp HQ on the market
RXR buys stake in Ivanhoe Cambridge’s 1211 Sixth Ave, Fox News HQ
