RXR Sells Brooklyn’s 470 Clermont Avenue for $70M

RXR — through the entity Vanderbilt Associates Owner — has sold the ground lease controlling the office building at 470 Clermont Avenue in Fort Greene, Brooklyn, for $69.6 million to Lincoln Property Company and Cross Ocean Partners, property records show. 

The deal closed on Aug. 8 and was recorded on Aug. 20, according to PincusCo, which first reported the sale. The building is anchored by the New York City Human Resources Administration and the New York City Housing Authority. 

“We are excited to invest alongside Lincoln Property Company to acquire this premium office property with strong cash flow,” Terence Kim, a managing director for U.S. credit for Cross Ocean, said in a statement. “This property is a case study in downside-protected, opportunistic investment in today’s office market, and we’re excited to build on our momentum in this sector.”

RXR had acquired the ground lease in 2014 for $194.5 million from Starwood Capital Group and GFI Development. RXR did not immediately respond to a request for comment. 

“470 Clermont represents an ideal blend of credit-cash flow and asymmetric upside,” Jared Toothman, the market leader for Lincoln’s New York-area business, said in the statement. “Lincoln, among the most prolific office developers and owner-operators over the past 50 years, is honored to partner with premier investors such as Cross Ocean to expand our portfolio into New York City at an optimal point in the investment cycle.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.