CBS selling Black Rock headquarters in NY for $760M

Viacom CBS plans to sell Black Rock, its famous headquarters in Manhattan, to real estate firm Harbor Group International for $760 million, the company announced this week. 

The media conglomerate will lease back a portion of the building, which it has owned since the early 1960s, and keep its offices there. 

The move comes as a result of a strategic review of noncore assets following the CBS merger with Viacom in 2019, according to Naveen Chopra, executive vice president and chief financial officer of Viacom CBS. 

“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,” Chopra said. 

The transaction is expected to close before the end of the year, the two companies said. 

“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,” Richard Litton, president of Harbor Group, said in a statement. “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.”

The real estate firm is planning significant upgrades to the building, located between 52nd and 53rd streets in Manhattan’s bustling Avenue of the Americas corridor, including improvements to its lobby, cafeteria and other tenant amenities. 

The sale of Black Rock would be its first since it opened in 1964.