RXR Completes 450 Lexington Buy (The Commercial Observer)

On the heels of purchasing the mezzanine debt on 450 Lexington Avenue, RXR Realty has completed its acquisition of the building from Istithmar World, the Dubai-based investment firm. The company also initiated a rent reset with the building’s largest tenant—law firm Davis Polk & Wardwell—that will keep the firm in place in its 650,000 square feet there for 15 years. Other tenants there include Warburg Pincus.

450 Lexington Avenue RXR president and chief financial officer Michael Maturo told The Mortgage Observer that the $300 million mezzanine loan secured by the building was purchased, though over a period of time.

“We bought it in two pieces,” Mr. Maturo said. “One was about 18 months ago and the second was within the last six months.” He said that this was the entire capital stack outside of the equity, before an in-place capitalization. The new debt on the 910,473-square-foot building is a $325 million senior mortgage, though Mr. Maturo said that he couldn’t comment on the terms of this new piece of financing. “The building is in incredible condition and substantially leased—so there’s not a lot to do, to be honest,” Mr. Maturo said, when asked about RXR’s plans for the acquisition. cgaines@observer.com

Published: September 17, 2012
Filed Under: Acquisition

The RXR platform manages 72 commercial real estate properties and investments with an aggregate gross asset value of approximately $17.7 billion, comprising approximately 23.1 million square feet of commercial operating properties and approximately 6,300 multi-family and for sale units in various stages of development in the New York Metropolitan area. Gross asset value compiled by RXR Realty in accordance with company fair value measurement policy and is comprised of capital invested by RXR and its partners, as well as leverage.