RXR Realty is buying a major stake in 1211 Avenue of the Americas, which is where Rupert Murdoch's media empire operates and is headquartered.
Also known as the News Corp. Building (the same name as Murdoch's company), the deal will give RXR 49 percent equity control of the asset, according to a report from Bloomberg. Plus, the landlord will invest $300 million into the office asset and be responsible for 49 percent of the debt for the building. The Lobby, plaza, and wellness center are all anticipated to get upgrades.
The stake was sold by Canadian-based property management firm Ivanhoé Cambridge.
Media brands in the building include Dow Jones & Company, The New York Post, and Fox News. News Corp., which accounts for 55 percent of the site, has extended its lease at 1211 Avenue through 2042. Meanwhile, a law firm is expected to exit the property in 2028, which will create more space, according to Bloomberg.
The move by RXR adds to its portfolio in the Americas in Manhattan. In October, the investor teamed up with Hudson Bay Capital to acquire and recapitalize the 500,000-square-foot office property, 620 Avenue of the Americas, which is located in Chelsea. The two secured a $320 million loan to help fund the deal. Also, RXR manages 1285 Avenue of the Americas, an office property that spans nearly 1.8 million square feet.
Most of RXR's 107 assets are in the Northeast, with Manhattan taking up a big chunk of the firm's portfolio. Its total gross asset value comes out to $17 billion, accounting for 30.2 million square feet of space.