Months after acquiring a big stake in 1211 Avenue of the Americas, RXR has struck a $1.45 billion deal to recapitalize the Midtown, Manhattan building that houses Rupert Murdoch's major news brands.
The deal will include a three-year extension on the $1.035 billion debt that was originated by Apollo Group Management, according to a report from the Commercial Observer. Maturity, which was set for August 2025, is now scheduled for June 2028, with the loan previously hitting special servicing, the news outlet noted. Liberty Mutual, King Street Capital Management, Criterion Capital, Abrams Capital and Baupost Group will provide between $250 million and $400 million in new equity.
Newmark handled the negotiations on the deal, while Eastdil Secured advised RXR.
Specifically, the funding will be used for a variety of building improvements. This includes $130 million for Fox News, leasing commissions and new bathrooms; $110 million to upgrade and reoccupy space left vacant by Ropes & Gray; $54 million for other improvements; and $61 million for capital expenditures.
Ropes late last year agreed to a 535,000 square foot lease to relocate to 1285 Avenue of the Americas. While Crain's New York Business previously reported that Murdoch's media brands plan to reduce their footprint at 1211 Avenue by 330,000 square feet, Fox is expected to move its presence in the coming months to the base floors, according to CO. Some other media brands at property also known as the News Corp. building include The Wall Street Journal, the New York Post and MarketWatch. Currently, the two-million-square-foot asset is 88 percent occupied.
In January, RXR Realty purchased a 49 percent stake in 1211 Avenue from Ivanhoé Cambridge, which continues to hold equity in the property and plans to invest more than $300 million to modernize the building.
Demand for office space in Manhattan continues to surge. In the third quarter, leasing rose by 20.4 percent, putting the borough on pace to see the best year for signings since 2014, with 31.7 million square feet of deals completed so far in 2025, according to a report from Savills.
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