RXR Realty Acquires $200M Leasehold in Fort Greene (The Real Deal)

RXR Realty, in a joint venture with American Landmark Properties, has purchased the long-term lease of a large office building at 470 Vanderbilt Avenue, near Barclays Center in Brooklyn, for just under $200 million.

The 650,000-square-foot, 75 year-lease purchase is one of RXR Realty’s biggest acquisitions in the outer boroughs of late. The firm plans to invest $1 billion outside Manhattan, according to Crain’s.

“470 Vanderbilt is well-positioned to take advantage of the amazing development activity that is occurring all around the building,” Scott Rechler, RXR Realty’s chief executive, said in a statement.

The property is mostly leased. In 2011, GFI Development, the property’s previous owner, leased six floors of the building, totaling about 400,000 square feet, to the city’s Human Resources Administration for the next 20 years.

The Eastdil Secured investment sales team of Doug Harmon and Adam Spies represented GFI and its partner Starwood Capital Group in the sale.

In 2013, Crain’s reported that GFI Development sold the leasehold to American Landmark Properties, owner of Chicago’s Willis Tower, for $200 million. This new venture is a completion of that sale, a source familiar with the transaction told The Real Deal.

Published: March 24, 2014
Filed Under: Acquisition

The RXR operating platform manages 73 commercial real estate properties and investments with an aggregate gross asset value of approximately $17.9 billion, comprising approximately 23.4 million square feet of commercial operating properties and control of development rights for approximately 6,300 multi-family and for sale units 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.