CBS Building sells to Harbor Group for $ 760 million



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Harbor Group International, a private property investment and management firm, announced on Monday that it has reached an agreement with ViacomCBS to purchase the CBS building in New York City for $ 760 million.

Commonly referred to as Black Rock for its gray granite architecture and dark tinted windows, the 38-story office tower is located at 51 West 52nd Street in midtown Manhattan.

ViacomCBS will lease its space on a short-term basis and HGI plans to implement a major investment program to reposition the property in support of a long-term rental plan.

“The CBS Building Acquisition Agreement is further proof of HGI’s ability to identify and successfully negotiate unique investment opportunities in an increasingly competitive market,” said Richard Litton, President of HGI . “With its prime location, Class A features and strong tenant roster, HGI is well 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 time of transformation for the New York City office market.

The lobby, cafeteria and other tenants’ amenities in the building will be modernized and the transaction is expected to close before the end of the year.

“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 of ViacomCBS. “The use of the proceeds from this transaction will remain consistent with our capital allocation strategy discussed previously, allowing us greater financial flexibility to invest in our strategic growth priorities, including streaming.”

The CBS building was completed in 1965 and served as the CBS headquarters in New York. The 150-meter skyscraper, designed by famous architect Eero Saarinen, is adjacent to Rockefeller Center and offers views of Central Park, the Museum of Modern Art, and the Midtown skyline.

HGI has 24 West 40th Street in Midtown on Bryant Park and 55 Broadway in the Financial District. Darcy Stacom and Bill Shanahan of CBRE are acting as exclusive agents of ViacomCBS in the transaction.



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