RXR Completes 32 Old Slip Buy With $325M GE Capital Loan


Scott Rechler’s RXR Realty closed on its purchase of Manhattan’s 32 Old Slip with a $325 million loan from GE Capital, Commercial Observer has learned. New York-based Meridian Capital Group brokered the financing.

RXR bought the 36-story office building between Front and South Streets from Beacon Capital Partners for $675 million in a deal that closed this week.

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32 Old Slip (Photo: CoStar).
32 Old Slip (Photo: CoStar).

Mr. Rechler’s firm purchased the property and simultaneously sold the land to a partnership that includes Brooklyn real estate investor David Werner in a 150-year leaseback arrangement, according to a person familiar with the matter.

The five-year loan from GE Capital—which was recently sold to Blackstone Group and Wells Fargo—carries a fixed interest rate below 3 percent with interest-only payments for the full term. Meridian Senior Managing Director Rael Gervis negotiated the debt deal.

The acquisition by RXR went into contract in December 2014, as Commercial Observer first reported.

The property, which is located on the Manhattan waterfront across from the Pier 11 ferry terminal, was completed in 1987.

One of 32 Old Slip’s largest tenants is American International Group, whose 260,000-square-foot lease expires at the end of 2017.

Beacon Capital bought the 1,161,400-square-foot property from Paramount Group in August 2007 for $751 million, city records show.

Storm waters from Hurricane Sandy damaged the lower floors of 32 Old Slip in October 2012 and Beacon Capital began renovations in 2013 to add improved flood barriers, pumps and piping systems to better protect against future storms.

Mr. Rechler declined to comment. Mr. Werner could not be reached for comment.

—Additional reporting by Lauren Elkies Schram