Scott Rechler’s RXR Realty has entered a joint venture with Youngwoo & Associates to operate offices at Pier 57, the West Side development originally conceived as a shopping complex dubbed SuperPier. RXR will convert 200,000 to 300,000 square feet of space on the pier into offices, Crain’s reported. Youngwoo & Associates will move forward with plans to transform ground-level shipping containers into affordable retail units and finalize preliminary deals with anchor tenants, according to the news site. Rechler told Crain’s that the success of the Starret-Lehigh Building at 601 West 26th Street, which RXR purchased in 2011 for almost $1 billion and is 98-percent leased, encouraged him to look for new office opportunities in the area. The financial terms of the deal were not disclosed, but Rechler tacked on an additional $150 million to Youngwoo’s original estimate for the total cost of conversion, putting the price at $350 million, according to the news site. The Hudson River Park Trust, which controls the pier, approved the joint venture, according to Crain’s. Reports of a deal broke earlier this year. – See more at: http://therealdeal.com/blog/2014/09/17/rxr-realty-enters-joint-venture-to-bring-offices-to-pier-57/#sthash.ERkzhS0M.dpuf
Published: September 29, 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.