RXR Will Revamp 32 Old Slip to Attract Tech Tenants

RXR Realty held a gathering Tuesday morning to kick off its ownership of 32 Old Slip, a 36-story, 1.1 million-square-foot office tower it acquired for $675 million in a deal that it closed on late last week.

The company served breakfast to about 1,000 tenants in the downtown office tower’s lobby, and Scott Rechler, RXR Realty’s chief executive, shared his vision for the building while asking tenants what kinds of changes they would like to see.

“We’re thinking of putting a café in the lobby and outdoor seating in the plaza,” Mr. Rechler said. He explained that RXR wants to reposition the building from a staid corporate tower that had traditionally drawn firms from the financial sector to one with a more creative atmosphere that would appeal to a tech firms, which have been flocking downtown. The company also plans to drop the adjacent plaza’s moniker, Financial Square, which is situated on the building’s north side.

RXR also showcased tenants who have recently moved into the building and installed offices with a modern aesthetic. Robert Silman Associates, a construction engineering firm, recently built its office with exposed ceilings, polished raw concrete floors and an open layout.

Currently, RXR is leasing the building’s 31st and 32nd floors, which total more than 60,000 square feet. With a growing number of tenants looking at the property, RXR has increased rents to the $60s per square foot, about $10 more than a year ago.

The tower is on the east side of downtown Manhattan, an area of the neighborhood that has lagged the west side in terms of activity. But Mr. Rechler thinks that’s about to change. “More tenants are moving downtown, and we think that more will be coming to downtown’s east side,” he said.

Published: April 15, 2015
Filed Under: Acquisition

The RXR platform manages 74 commercial real estate properties and investments with an aggregate gross asset value of approximately $17.7 billion, comprising approximately 23.7 million square feet of commercial operating properties and approximately 6,000 multi-family and for sale units in various stages of development in the New York Metropolitan area as of September 30, 2017, adjusted for transactions through October 18, 2017. Gross asset value is 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.