Scott Rechler

Like others on this list, Scott Rechler’s RXR proved a force to be, ahem, “Rechoned” with last year. 

“Going into `24, I had a view that the New York office market was at a recovery point,” Rechler said. “So I was very aggressive with our existing properties and any new properties we were acquiring in terms of resetting the basis to where the new world was investing capital, putting long-term capital structures that made sense in place, and taking advantage of the improving leasing market.”

The shift in sentiment and tenant demand, coupled with ongoing dislocation in the market, opened a window for RXR to lean into quickly. Its activity included investing $2 billion of equity to recapitalize some of RXR’s existing portfolio, and the firm acquiring ownership interests in 6 million square feet of other Class A office buildings in New York. 

“Any vacancy we had is now leased — and the rents have gotten higher,” Rechler said. “When we focused on good buildings with broken capital structures, we were able to position them with stronger capital structures and the right ownership, then the tenants came in. That was a big part of our year, and it was intense, because each of these things I’m describing involved intense negotiations.”

Further, those negotiations were direct, without a third-party intermediary — a testament to the company’s credibility, and deep relationships in the industry.

RXR had plenty of high points this past year, but let’s start with leasing. There was the 535,000-square-foot lease that law firm Ropes & Gray signed at 1285 Avenue of the Americas; Mizuho Financial Group’s 151,409-square-foot lease at the same building; and the 193,000-square-foot lease Amazon signed at 237 Park Avenue. 

Midtown saw plenty of action from the firm in general, with the acquisition of a 49 percent stake in 1211 Avenue of the Americas in January that followed RXR  joining forces with Hudson Bay Capital to jointly purchase and recapitalize 620 Avenue of the Americas last October. 

The former transaction is a pride point for Rechler. “It was a situation where it was a win for Ivanhoé Cambridge, who stayed in the deal with us, and for us to be able to come in and close the transaction quickly at a good basis, and add value quickly. We closed that whole deal in 60 days, which is very meaningful for a transaction of that size.” 

Then, there’s the conversion of 5 Times Square to a mixed-use building with 942 residential units, being led by partners RXR, Apollo Global Management and SL Green, which is going “really, really well,” Rechler said. 

While the firm is known for office, it’s also active on the housing side around the country, via its active credit platform, public-private partnerships and new acquisitions. “I think housing will be 50 percent of our business at some point, but, for now, we’re bullish on New York office and, to the extent that we can find opportunities, we’ll continue to be an investor and buyer.”