NEW YORK CITY-Ivanhoé Cambridge has acquired a 51% managing member interest in 1211 Avenue of the Americas from an affiliate of Beacon Capital Partners with an investment of over $850 million. Callahan Capital Partners, as Ivanhoe's strategic partner for U.S. acquisitions, helped source the transaction.
The two million-square footClass A trophy office building sits between 47th and 48th streets and is adjacent to Rockefeller Center. “It's an iconic piece of real estate in New York, and we love the location across from Rockefeller Center, Adam Adamakakis, EVP of investments at Ivanhoé Cambridge tells GlobeSt.com.
“The property itself has good solid cash flow, with term, but we have an additional 170,000 square feet on top of the building we can lease, and tenants that are rolling who have below market rents, so as those leases mature we have new opportunities to drive rent.” Key tenants at 1211 Avenue of the Americas include News America Inc., a subsidiary of Twenty-First Century Fox, Ropes & Gray and Axis Reinsurance.
“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,” says Bill Tresham, president, global investments, Ivanhoé Cambridge.
This transaction brings the company's investments in the office and multifamily sectors of Manhattan to more than $3 billion. It is also Ivanhoé Cambridge's third acquisition made as part of its strategic relationship with Callahan Capital Properties. The pair previously picked up 1411 Broadway.
In general, Adamakakis says, Ivanhoe likes its US investments to offer a chance at value creation. “We're not typically core real estate buyers, we like to look at deals with more complexity that have a chance to create short- to mid-term value. We'll look at all opportunities but there has to be a glimmer of upside or value creation for us to get excited about it. That's because about half of our overall portfolio is in Canada, and a lot of that is regional and super regional shopping centers, so that generates steady income.”
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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.
