RXR has completed a $1.45 billion recapitalization of 1211 Sixth Avenue, a major office building in Midtown Manhattan, according to the Commercial Observer. The deal comes nine months after RXR acquired a 49 percent stake in the property.
The recapitalization package includes a three-year extension on a $1 billion loan from Apollo Global Management, pushing the maturity date to June 2028. In addition, equity investors such as Baupost Group, King Street Capital Management, Criterion Real Estate Capital, Abrams Capital and Liberty Mutual are contributing between $250 million and $400 million in new capital.
A portion of the funds will be used for tenant improvements and upgrades at the property. Fox News is set to receive $130 million for improvements to its space. Another $110 million will go toward upgrading areas vacated by law firm Ropes & Gray, which recently signed an agreement to relocate and vacated about 300,000 square feet. Additional capital expenditures total $61 million with another $54 million allocated for further tenant improvements.
Newmark’s Adam Spies, Doug Harmon and Marcella Fasulo negotiated the terms of the recapitalization.
RXR purchased its interest in January in partnership with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), which owns the majority stake through its subsidiary Ivanhoé Cambridge. Ivanhoé Cambridge and Callahan Capital Properties originally acquired the building for $1.7 billion across two transactions in 2013 and 2016.
Fox News and News Corp., who together occupy about 1.2 million square feet at 1211 Sixth Avenue, extended their leases last year until 2042. Fox’s new lease for 670,000 square feet begins in December 2025; News Corp.’s extension for 485,000 square feet starts two years later. The building currently maintains an occupancy rate of approximately 88 percent.
