Long Island-based real estate firm RXR Realty LLC is under contract to purchase 450 Lexington Avenue from Istithmar World Capital.
The company, which is run by Scott Rechler, had purchased a portion of the property’s $600 million in debt in over the past two years, and is close to assuming complete ownership of the property.
“The reason why they (RXR) bought the debt was that they knew it was maturing and Istithmar is in the process of selling off some of its assets,” a person close to the deal told The Commercial Observer. “It is a natural exit for them.”
Mr. Rechler did not return phone calls requesting comment.
The deal, which was first reported by The Wall Street Journal, is for an undisclosed price. Our source would not confirm the exact amount RXR Realty was paying for the building, citing a confidentiality agreement.
The 910,473-square-foot Class A office building is currently occupied at 99.3 percent, and has tenants like law firm Davis Polk & Wardwell and Morgan Stanley Smith Barney, according to CoStar data.
Istithmar purchased 450 Lexington in 2006 but refinanced the property the following year for $600 million.
RXR Realty owns roughly 8 million square feet in Manhattan, including the Starret Lehigh Building, a Chelsea building it snatched up for $920 million in 2011.
A person at a listed number for Istithmar declined to comment.