Scott Rechler’s RXR Realty has signed a 99-year triple-net lease at British department store tycoon Mohamed Al Faye’s 75 Rockefeller Plaza in Midtown Manhattan, where it plans to undertake a major capital improvement to reposition the building.
The 33-story building will be fully vacated by Time Warner Cable in 2014, leaving behind roughly 630,000 square feet of rentable area, and the renovations will include a new lobby and a restoration of its landmarked, classic limestone façade, executives at RXR said.
On the heels of purchasing the mezzanine debt on 450 Lexington Avenue, RXR Realty has completed its acquisition of the building from Istithmar World, the Dubai-based investment firm.
The company also initiated a rent reset with the building’s largest tenant—law firm Davis Polk & Wardwell—that will keep the firm in place in its 650,000 square feet there for 15 years. Other tenants there include Warburg Pincus.
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.
In the past four years, CBRE senior managing director Paul Allegretti has distinguished himself as the tristate area’s “sustainability guy,” managing a host of city buildings in eco-friendly fashion. Working in tandem with David Pogue, CBRE’s national director of sustainability, and an army of what he called green knights, each scattered across the country, Mr. Allegretti explained to The Commercial Observer how a brokerage firm can keep its clients environmentally and emotionally sound.