Ivanhoé Cambridge, Callahan invest $650m in Manhattan office
Ivanhoé Cambridge and Callahan Capital Properties have invested $650m (€582m) in a New York office asset as part of their ongoing partnership.
The real estate arm of Caisse de dépôt et placement du Québec and the private equity firm have acquired 85 Broad Street in Manhattan.
The deal comes soon after they announced their joint acquisition of a Chicago office building for $145m.
The 1.1m sqft building at 85 Broad Street has recently been refurbished
Arthur Lloyd, president for office investment in North America at Ivanhoé Cambridge, described it as a “high quality, marquee property”.
The building he said, appeals to both traditional and “TAMI” (technology, advertising, media and information) tenants.
“This acquisition expands our footprint and brings our New York office portfolio to more than 6.7m sqft,” he said.
Tim Callahan, chief executive of Callahan Capital Properties, said the deal was the private equity firm’s first in downtown Manhattan.
“We believe downtown offers tremendous long-term growth potential, given the immense public and private investment that continues to attract a broad array of businesses and residents,” he said.
Recent capital improvements on the asset included elevating existing building amenities and adding state-of-the-art building services.