Ivanhoé/Callahan Buy Out Beacon at 1211 Avenue of the Americas

Ivanhoé Cambridge and its partner, Callahan Capital Properties, announced this week that it has acquired the 49% interest in 1211 Avenue of the Americas in Midtown New York City that it didn't already own from Beacon Capital Partners in a deal that valued the property at roughly $1.8 billion. Ivanhoé Cambridge and Callahan Capital Properties originally acquired a 51% stake in the office tower in October 2013 for $580 million. The deal was brokered by Eastdil Secured; terms were not disclosed.

"We are very pleased with the completion of our phased investment strategy for 1211 Avenue of the America," said Arthur Lloyd, Executive Vice President at Ivanhoé Cambridge. "This is a truly iconic property with exceptional locational and physical characteristics that offer tremendous value enhancement opportunities."

"1211 Avenue of the Americas is a significant asset in our 5.6-million-square-foot New York office portfolio and exemplifies our long-term approach towards owning quality assets in Midtown Manhattan," added Tim Callahan, Chief Executive Officer of Callahan Capital Properties. "With unparalleled transportation options and the largest concentration of retail, dining and cultural amenities Manhattan has to offer, Midtown continues to be among the most dynamic markets in which to live, work and play."

Built in 1973 and also known as the News Corp. Building, 1211 Avenue of the Americas is a 44-story, two-million-square-foot office tower that prominently stands among a row of skyscrapers known as "Corporate Row." The 45 story, Class A trophy building is centrally located on Avenue of the Americas between 47th and 48th streets, with direct access to the Rockefeller Center Concourse amenities and subway. The building is certified LEED® Silver and is also winner of the renowned BOMA 2008/2009 Operating Office Building of the Year Award and the BOMA 2010 Middle Atlantic regional Building of the Year Award. The property was 92% leased at the time of sale, with major tenants including Fox News, News Corp, Wells Fargo Advisors, and the headquarters of Dow Jones.

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China's Gemdale Enters LA Market with $125M Mixed-Use Project

Gemdale Properties and Investments, a subsidiary of one of China’s largest blue chip real estate developers, Gemdale Corporation, announced that it is partnering with Los Angeles-based LaTerra Development to develop a $125 million mixed-use project in Hollywood. The project will be the first real state investment in Hollywood by a major Chinese company, which established its US headquarters in Los Angeles earlier this year. The Gemdale-LaTerra project at 1350 N. Western Avenue at Sunset Boulevard is planned to be developed with office, retail and apartments, explained Charles Tourtellotte, President and CEO of LaTerra. Curtis Palmer of CBRE was the broker on this transaction.

Jason Zhu, CEO of Gemdale USA, said: "This inaugural Los Angeles investment promises to be the first of many deals as we ramp up our capital investment and property development business in Los Angeles, a market that we are confident presents great value. There is abundant opportunity here and we are delighted to have partnered with LaTerra, the like-minded urban development partner we have been seeking."

"Both LaTerra and Gemdale are committed to topflight design, amenities and sustainable building practices," added Tourtellotte. "With our partner, Gemdale, we will be developing a project that will have a positive fiscal impact on the community."

Gemdale's announcement of its project is the first since the recent slowdown in the Chinese economy and dramatic losses on the country's stock exchange prompted worries that the tidal wave of Chinese investment in Los Angeles might come to a halt, according to a Los Angeles Times article. Simone Liu of Wells Fargo Advisors in Beverly Hills, who gives investment advice to Chinese clients, said the opposite dynamic appears to be in play. "After what happened in China, people are looking for ways to diversify their portfolios," she said "They feel like the U.S. is more transparent and there are more opportunities in the real estate market here."

For more news and information visit Blumberg Partners.