Mesa West Lends $404M on RXR’s 32 Old Slip
By Cathy Cunningham April 12, 2019 5:27 pm
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RXR Realty has sealed a $404 million refinance for its trophy office property at 32 Old Slip, Commercial Observer has learned.
Mesa West Capital provided the floating-rate, five-year loan. The deal closed late Friday afternoon.
The financing was negotiated by NKF Capital Markets’ Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer and Dylan Kane.
The 36-story, 1.2 million-square-foot Class-A building is located on the Manhattan waterfront across from the Pier 11 ferry terminal and features sweeping views of the East River, New York Harbor, and the Downtown Manhattan skyline.
RXR recently completed a significant, multi-million-dollar lobby renovation at the property, which is now over 90 percent leased. Current tenants include the U.S. Census Bureau, Daiwa Securities and law firm Cahill Gordon & Reindel, which signed a 20-year deal for 201,621 square feet in October 2018—marking last year’s largest direct new lease for Downtown Manhattan.
A portion of the proceeds from Mesa West’s loan will be used for tenant installation costs, RXR Realty President Michael Maturo told CO.
“The unmatched views of the East River and unique amenity offerings at 32 Old Slip make the property a very attractive home for the most desirable tenants like Cahill Gordon & Reindel,” Roeschlaub noted.
Also in October, Alliant Insurance Services, leased just under 56,000 square feet at the property while creative agency Decoded Advertising nabbed close to 16,000 square feet.
“32 Old Slip stands out among its peers as the premier office product in the up-and-coming Seaport District, surrounded by hundreds of high-quality restaurants and retailers all within walking distance to the property,” Stolly said of the building’s draw.
RXR purchased 32 Old Slip from Beacon Capital Partners for $675 million in 2015. GE Capital provided a $325 million loan in the deal.
RXR has certainly had a busy week. Only yesterday it closed a $375 million refinance for its Pier 57 project in Hudson River Park, as first reported by CO. Nuveen Real Estate provided the debt for the historic pier, which is being redeveloped into a much-buzzed-about mixed-use property with Google as an anchor tenant.
Officials at Mesa West were not immediately available for comment.
