Starwood Provides $118M Refi on Two RXR New York-Area Properties
The refinancing takes out $131M that Capital One loaned RXR in 2020
By Brian Pascus March 11, 2024 1:45 pm
reprints
RXR is borrowing big to refinance a pair of New York City area properties.
Scott Rechler’s RXR has secured $118.16 million to refinance two properties that opened in recent years — The Hall, an office property in Downtown Brooklyn, and One Clinton Park, a luxury, mixed-use multifamily in New Rochelle, N.Y. — according to property records.
Starwood Property Trust provided the $118 million loan to several limited liability companies associated with RXR. Mortgage documents were signed by David Frank, RXR’s senior executive vice president and general counsel.
The refinancing will replace a $102.8 million mortgage and a $28.3 million mortgage RXR took out from Capital One (COF) in February 2020 and consolidate and transfer $96.4 million in unpaid principal and $21.7 million in unpaid principal between the two properties from Capital One to Starwood Property Mortgage in the form of a single lien of $118.16 million, according to property records.
The Hall hasn’t been the brightest spot for RXR. The New Yorker reported last year that the property – located at 47 Hall Street near the Brooklyn Navy Yard — has become “one of the least promising properties in RXR’s sagging portfolio,” after remaining largely empty for three years following its opening during the COVID-19 pandemic. RXR signed a deal with the city in 2023 to turn the vacant office spaces into a migrant shelter.
Located at 55 Clinton Place, One Clinton Park has been a more successful venture for the firm. RXR announced in November 2022 that the building had been 50 percent leased shortly after opening that year. The 28-story luxury apartment tower includes 352 units ranging from studios to three-bedrooms.
The project has been largely successful in New Rochelle and has cemented RXR’s place in the affluent northern suburb just outside New York City. RXR is near completion on a sister luxury residential property, Two Clinton Park, and opened 360 Huguenot, a 28-story, 280-unit multifamily tower, in 2019.
Starwood Property Trust declined to comment. RXR declined to comment, as well.
Brian Pascus can be reached at bpascus@commecialobserver.com
