Real Estate and Politics
The Port Authority of New York & New Jersey has elected former New Jersey Attorney General John Degnan as chairman of the bi-state agency’s Board of Commissioners. Scott Rechler, the CEO of RXR Realty and vice chairman of the Port Authority’s Board of Commissioners, assumed the chairmanship following David Samson‘s resignation from the position in March. Along with Wednesday’s announcement of Mr. Degnan’s swearing in, the Port Authority indicated the board’s authorization of $90 million in improvements for its 64-year-old bus terminal. Commercial Observer checked in with Mr. Rechler to see how he felt about giving up the temporary chairman post, his greatest accomplishment while serving as chairman and his feelings about his replacement.
Thor Equities signed a deal in the wee hours of the morning to snap up 530 Fifth Avenue for $595 million, sources with knowledge of the deal confirmed to Commercial Observer, and has partnered with General Growth Properties and RXR Realty at the site.
The New York Post broke news of the off-market deal an hour and a half ago.
Jennison Associates has renewed its lease at 237 Park Avenue and expanded by 20,000 square feet.The investment firm’s existing 146,000-square-foot space will be increased to 166,000 square feet across three floors of the building.
The tenant, a wholly-owned subsidiary of Prudential Financial, has renewed its lease for 10 years, according to Crain’s New York Business, which first reported the deal. Asking rent for the space was in the $80s per square foot.
The Port Authority of New York & New Jersey’s fracas over construction financing for 3 World Trade Center has been a positive development in the scrutinized public agency’s quest for greater transparency, the vice chairman of the Port’s board claims.
RXR Realty CEO Scott Rechler, who has led the agency’s board of commissioners since former Chairman David Samson resigned over the fallout from the George Washington Bridge scandal in March, praised the three-month debate over the Port’s potential backing of a loan that would help Silverstein Properties finish 3 World Trade Center.
RXR Realty has released renderings of the revamped 237 Park Avenue after the recent open of the marketing office in the Class A office building.
To create the office, RXR, along with Walton Street Capital, gutted a floor and rebuilt the space at the 21-story building, between 45th and 46th Streets, to highlight the full potential of the 60,000-square-foot floor plate.
Last Friday, RXR Realty closed on its $330 million purchase of 61 Broadway at Exchange Place, Commercial Observer has learned.
The deal marks RXR’s entree into the lower Manhattan market. RXR wanted the 33-story building because “the building itself has a tremendous amount of character,” it’s a great block with “lots of air and light” and one of RXR’s tenants took a lease there, said Scott Rechler, chairman and chief executive officer at RXR.
Port Authority of New York & New Jersey commissioners approved a $21.3 million lease renewal for Hudson Group Retail’s 17 spaces on six floors of the Port Authority Bus Terminal after tacking on a living wage requirement Wednesday.
The newsstands, office and storage spaces for the New Jersey-based retailer add up to 14,065 square feet. The leases, which have been expired since 2005, would last up to 11.5 years, Michael Francois, the agency’s chief of real estate and development, said during a presentation at the agency’s offices at 225 Park Avenue South.
California-based Security Industry Specialists has signed an 11,633-square-foot lease at the Starrett-Lehigh Building at 601 West 26th Street.
The security company signed a 10-year-six-month deal for a portion of the 13th floor of the building, according to The Wall Street Journal, which first reported the lease. Asking rent for the space was in the high-$60s per square foot.
World Trade Center
William Elder has helped fuel immense growth as director of leasing and managing director of RXR Realty’s New York City platform. The firm now owns and operates what is soon to be nine million square feet of real estate as it expands its horizons outside of the city and continues to cultivate its existing Manhattan portfolio. Read More
Members of the board of the Port Authority of New York and New Jersey are at odds over whether to double the amount of subsidies available for Silverstein Properties’ 3 World Trade Center to $1.2 billion, according to The New York Times.
Scott Rechler, the vice chairman of the Port Authority and chief executive of RXR Realty, is spearheading the proposal, arguing that construction of the tower would mark the completion of the new World Trade Center site.
Office space provider Bevmax Office Centers has signed a 10-year, 15,736-square-foot lease at Jack Resnick & Sons’ 485 Madison Avenue.
“The Resnick organization is one of the premier landlords and has a reputation for running extraordinarily well-managed and premier properties,” Rick Feld, the president of Bevmax, told Commercial Observer. “Not every landlord in New York meets that standard.”
When HFF’s New York office negotiated its first major deal in 1998, Michael Tepedino, a recently hired broker at the time, and his colleagues called on Cigna, an “old-line relationship” that one of them knew on the life insurance side of the business.
The borrower, SL Green Realty Corp., was by no means desperate to find a lender.
The Office of Comptroller of the Currency will be renewing its lease in Midtown.
The OOC will continue to operate out of its massive 110,000-square-foot space at the RXR Realty-owned 340 Madison Avenue for another 10 years. In-house director of leasing William Elder represented the landlord and Ken Rudeman of Studley represented the tenant. Neither party returned call for comment.
RXR Realty’s legal representation plans to pursue its lawsuit against American Realty Capital and George Comfort & Sons over the sale of Worldwide Plaza, Stephen Meister, attorney for RXR, told The Commercial Observer.
The lawsuit, filed last month, alleges RXR had reached an agreement to buy the 48.9 percent stake in the 59-story, 1.8-million-square-foot tower with American Realty Capital as an investment partner, which included the right to purchase the entire property for a combined $1.35 billion.
Continuing its prolific buying spree in New York, American Realty Capital New York Recovery has acquired a 48.9 percent equity interest in One Worldwide Plaza for $220.05 million, the real estate investment trust announced today.
“We are pleased to have acquired another high-quality asset and look forward to an important partnership with George Comfort & Sons, Inc., RCG Longview, and DRA Advisors LLC,” Michael Happel, chief investment officer for NYRR, said in a prepared statement. “Worldwide Plaza is located in the Midtown Manhattan office sub-market and features large credit tenants as well as potential additional leasing opportunities. This acquisition increased our portfolio value to over $2.1 billion, including other recently announced acquisitions.”