NEW YORK CITY—Invesco Real Estate has purchased a minority stake—though not a small share—in 1221 Ave. of the Americas from The Canada Pension Plan Investment Board, according to PERE. The asset, which was purchased for over $1 billion, was acquired on behalf of China Investment Corp., a Beijing-based sovereign wealth fund.
The trade of a 45% stake in the Midtown office tower values the building at $2.3 billion, CPPIB tells PERE. The deal reportedly was handled by Eastdil Secured. Local property owner The Rockefeller Group will retain the remaining 55% stake and continue to operate the building. GlobeSt.com was unable to reach the parties to the deal at press time.
The transaction follows a busy leasing year at the 51-story office tower in the wake of a major renovation. The capital improvement plan was launched following the 2015 exit from the building of McGraw-Hill Financial, the anchor tenant at the tower that long was known as the McGraw-Hill building.
Today, the property is 93% leased. Major tenants include the law firm of White & Case, Morgan Stanley and Comcast. Built in 1969, amenities include an auditorium, a fitness center and restaurants.
Canada's pension fund first picked up its holdings in the back in 2010 for about $500 million. Hilary Spann, the organization's head of US real estate investments, explained why the sale was done at this particular time.
“Valuations in the Manhattan office market have increased significantly since our acquisition of 1221, and we feel this is an opportune time to monetize our position in the property,” she asserts. “Manhattan remains a target market for us and we continue to pursue new investment opportunities here and in other key US real estate markets.”
The trade of a 45% stake in the Midtown office tower values the building at $2.3 billion, CPPIB tells PERE. The deal reportedly was handled by Eastdil Secured. Local property owner The Rockefeller Group will retain the remaining 55% stake and continue to operate the building. GlobeSt.com was unable to reach the parties to the deal at press time.
The transaction follows a busy leasing year at the 51-story office tower in the wake of a major renovation. The capital improvement plan was launched following the 2015 exit from the building of McGraw-Hill Financial, the anchor tenant at the tower that long was known as the McGraw-Hill building.
Today, the property is 93% leased. Major tenants include the law firm of
Canada's pension fund first picked up its holdings in the back in 2010 for about $500 million. Hilary Spann, the organization's head of US real estate investments, explained why the sale was done at this particular time.
“Valuations in the Manhattan office market have increased significantly since our acquisition of 1221, and we feel this is an opportune time to monetize our position in the property,” she asserts. “Manhattan remains a target market for us and we continue to pursue new investment opportunities here and in other key US real estate markets.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
