RXR Acquires Stake in Upper East Side Housing Portfolio, Assumes $150M in Debt

RXR assumed $150 million in debt tied to a residential tower and 20 nearby townhouses in the Upper East Side as part of its acquisition of a 45 percent stake in the portfolio, according to sources familiar with the deal.

It’s unclear exactly how much the development and ownership firm led by Scott Rechler paid for part ownership in 265 East 66th Street and the other rental properties within the portfolio — valued at $435 million — apart from the assumption of the debt, sources said.

“RXR is pleased to expand our longstanding relationship with the GO Partners team by providing a strategic investment in a premier Upper East Side asset, which includes implementing a value-enhancement strategy aimed at further strengthening the property’s long-term positioning,” Russ Young, executive vice president of investment management group of RXR, said in a statement.

The Freddie Mac debt was provided by Wilmington Trust in 2023 when the majority owners, Josh Gotlib and Meyer Orbach of GO Partners, bought the properties for $425 million from Stefan Soloviev’s Soloviev Group.

“This transaction marks another step in our long-standing relationship with RXR and reflects our shared conviction in the strong outlook for high-quality multifamily assets located in Manhattan,” Gotlib said in a statement.

Newmark’s Adam Spies and Adam Doneger brokered the sale but declined to comment further, while GO Partners and RXR declined to comment.

The 45-story apartment building at 265 East 66th Street, at the corner of East 66th Street and Second Avenue, was built in 1979.

Mark Hallum can be reached at mhallum@commercialobserver.com.