RXR has finalized a $1.45 billion recapitalization of 1211 Sixth Avenue in Midtown Manhattan, according to a report from the Commercial Observer. The move comes nine months after RXR acquired a 49 percent stake in the office tower.
The new financing arrangement includes a three-year extension on a $1 billion loan from Apollo Global Management, moving the maturity date to June 2028. In addition to refinancing, RXR has secured between $250 million and $400 million in fresh equity from existing investment partners. These partners include the Baupost Group, King Street Capital Management, Criterion Real Estate Capital, Abrams Capital, and Liberty Mutual.
A portion of the recapitalization will fund improvements for tenants and capital projects at the property. Fox News is expected to receive $130 million for tenant improvements. An additional $110 million will be allocated to update space vacated by Ropes & Gray. The plan also sets aside $61 million for capital expenditures and another $54 million for further tenant improvements.
The negotiations were handled by a Newmark team consisting of Adam Spies, Doug Harmon, and Marcella Fasulo.
RXR’s acquisition of its minority stake in January made it a partner with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), which holds the majority interest through its subsidiary Ivanhoé Cambridge. Ivanhoé Cambridge and Callahan Capital Properties previously purchased the building in transactions totaling $1.7 billion across two deals in 2013 and 2016.
Fox and News Corp., major tenants at 1211 Sixth Avenue, extended their leases in January 2023 to remain in the building until 2042. Fox’s new lease for 670,000 square feet begins in December 2025; News Corp.’s 485,000-square-foot extension starts two years later. Ropes & Gray’s decision to relocate has left approximately 300,000 square feet available at the property, which currently has an occupancy rate of 88 percent.
