NEW YORK (WCBS 880) — ViacomCBS plans to sell its CBS headquarters in Midtown, known as the CBS Building or Black Rock, to Harbor Group International for $760 million.
ViacomCBS will lease back its space on a short-term basis, with revenue from the sale going toward long-term growth objectives, according to the company.
"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,” said Naveen Chopra, the EVP and CFO at ViacomCBS, in a statement.
The sale of the iconic building, located on Sixth Avenue between 52nd and 53rd streets, marks the first time it will change hands since it was opened in 1964.
Harbor Group plans to “implement a significant capital program” to position the building for a long-term leasing plan, according to a press release from the companies.
"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,” said Richard Litton, President at HGI, in a statement. “We look forward to activating our strategic business plan for this asset at a transformational time for New York City's office market."
The purchase is expected to close by the end of the year.