RXR Sells Standard Motors Product Building in Long Island City for $42M

Ladies and gentlemen, start your engines. 

RXR has sold the Standard Motors Product Building in Long Island City, Queens, Commercial Observer has learned. 

The flex office building, at 37-18 Northern Boulevard, sold for $42 million to Jack Guttman’s Pearl Realty Management, which one source described as a “quiet but very active buyer and seller of New York real estate” today.

RXR’s Scott Rechler has spoken in the past about the firm’s approach to portfolio review, dubbed “Project Kodak,” in which a culling of assets that are “film” versus “digital” has taken place over the years. One source familiar with the sale said the building was a non-strategic film asset for RXR, with all parties working collaboratively to execute the sale.

Newmark’s Brett Siegel, Dan O’Brien, Adam Spies, Adam Doneger and Josh King negotiated the sale. 

Named for the automotive parts once manufactured at the building, the 300,000-square-foot Standard Motors Product Building was acquired by RXR for $110 million in 2014. 

Tenants include the Jim Henson Foundation and — perhaps fittingly — the Kodak Film Lab.  

Last November, two tenants, luxury homebuilder I Grace and luggage maker Rimowa, renewed their spaces at the property. I Grace held on to its 13,449-square-foot space, while Rimowa moved to the building’s fifth floor and expanded its space from 4,625 to 8,081 square feet. 

New York Community Bank was once the building’s lender but the debt was sold, as part of a loan portfolio sale, to Lone Star Funds, which also participated in the building’s sale. The same Newmark team conducted the loan portfolio sale. 

RXR and Newmark declined to comment. Pearl Realty Management couldn’t be reached for comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.