51 West 52nd Street — better known as Black Rock or the CBS Building — is slated to be sold by the end of the year, marking the first time it has changed hands since the building’s completion more than half a century ago. The owner-occupier, ViacomCBS, is selling the building to privately owned international real estate investment and management firm Harbor Group International. The transaction is structured as a seller leaseback. As such, ViacomCBS will maintain its presence in the building and lease space from Harbor Group. The sale price is $760 million.
“The agreement to acquire the CBS Building is further proof of HGI’s ability to identify and successfully transact for unique investment opportunities in an increasingly competitive market,” said HGI President, Richard Litton. “With its prime location, Class A features and strong roster of tenants, HGI is positioned to acquire one of New York City’s few iconic assets. We look forward to activating our strategic business plan for this asset at a transformational time for New York City’s office market.”
While there were cosmetic upgrades made to the building in 2016, HGI plans to significantly upgrade tenant amenities — as well as design a new lobby — to reposition the property and bolster its long-term leasing plan.
“This agreement follows the previously announced strategic review of non-core assets that we completed shortly after our merger,” said Naveen Chopra, executive vice president and chief financial officer at ViacomCBS. “The use of proceeds from this transaction will remain consistent with our previously discussed capital allocation strategy, allowing us further financial flexibility to invest in our strategic growth priorities, including streaming.”
The CBS Building is located between 52nd and 53rd streets, along one of the most prominent corridors in the city — the Avenue of the Americas. The 38-story tower was completed in 1963 and instantly cemented itself within the iconic Midtown Manhattan skyline. Directly adjacent to Rockefeller Center, the building is near multiple train stations, as well as a veritable plethora of dining and entertainment locations.
The historic property was built as the New York headquarters of CBS and designed by renowned architect Eero Saarinen — the same architect who designed the Gateway Arch in St. Louis. Black Rock also showcases views of Central Park and is the home of the Museum of Modern Art.
The acquisition of Black Rock will add more New York City office space for rent to HGI’s growing portfolio of properties. HGI also owns 24 Bryant Park South in Midtown — which it picked up for $85 million in 2015 — as well as 55 Broadway in the Financial District, for which it paid $157 million in 2014.
CBRE’s Darcy Stacom and Bill Shanahan are the exclusive agents for ViacomCBS in the transaction.
