A look at the history of 32 Old Slip in Lower Manhattan, originally the site of a building held by the United States Assay Office—the last public gold refinery in the country. Since then the 1.2-million-square-foot property has been through multiple sales and a big turnaround following Hurricane Sandy. Read More
It’s not often that the top real estate honchos are willing, dare we say eager, to call a reporter from the mountains of North Africa to talk about one of their colleagues.
But when it came to talking about Scott Rechler, they called from far and wide over the holidays to heap praise on the chief executive officer and chairman of RXR Realty. Developer Joseph Sitt, the head of Thor Equities, for one, phoned Commercial Observer last week from the Atlas Mountains in Morocco.
RXR Realty is in contract to purchase the 1.2-million-square-foot Class A commercial building at 32 Old Slip from Beacon Capital Partners for $675 million, a source with intimate knowledge of the deal told Commercial Observer.
One of the 36-story building’s biggest tenants is American International Group, whose 260,000-square-foot lease expires at the end of 2017.
Martha Stewart is opening Martha Stewart Cafe inside RXR Realty‘s Starrett-Lehigh Building, as Bloomberg News reported two days ago, but Commercial Observer has learned that the cafe is really a kiosk occupying a mere 150 square feet.
The kiosk, which will replace a seating area on the first floor in the building at 601 West 26th Street
between 11th and 12th Avenues, is not enclosed and won’t have any seats, said a source with intimate knowledge of the long-term deal, which was signed within the last 30 days. There were no brokers involved in the deal.
Real Estate and Politics
RXR Realty received a $200 million loan from Morgan Stanley to help finance the acquisition of an office condo interest at 530 Fifth Avenue, Mortgage Observer has first learned.
The five-year loan closed in late October, coinciding with the close of the $300 million condo buy, said RXR President and Chief Financial Officer Michael Maturo.
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.