Landlords of 1211 Avenue of the Americas appear poised to have a significant amount of space available. Rupert Murdoch's media brands, which operate through Fox Corp. and News Corp., are expected to trim their footprint at the Midtown office property by nearly 330,000 square feet, according to a report from Crain's New York Business.
Both Fox and News Corp operate independently under the ownership of the Murdoch family. The two entities contain major news outlets: Fox News, The Wall Street Journal, the New York Post, and MarketWatch.
It's unclear what brands intend to vacate space at the property and whether they will move to another building.
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Regardless, credit rating agency KBRA downgraded 1211 Avenue's $1 billion mortgage, citing the potential loss of Fox Corp.
"The rating actions follow a surveillance review of the transaction and reflect a decline in KNCF and KBRA value since last review and securitization stemming from high upcoming lease rollover," it wrote.
The move comes about two years after Murdoch's media giants agreed to extend their leases at 1211 Avenue through February 2042. However, that appears to cover just 924,000 square feet, with roughly 328,000 square feet set to mature in November 2025.
As reported by Bloomberg, in January, RXR Realty purchased a 49 percent stake in 1211 Avenue from Ivanhoé Cambridge. RXR plans to invest $300 million in the office asset and assume 49 percent of the debt for the nearly 1.9 million-square-foot property.
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