RXR Realty completes largest office-building acquisition of the year

By Daniel Geiger, Crain’s

RXR Realty closed on its nearly $2 billion purchase of 1285 Sixth Ave. Friday—the biggest office building transaction in the city so far this year.

In conjunction with the acquisition, RXR signed a deal with UBS for about 900,000 square feet at the 1.8 million-square-foot skyscraper. The Swiss bank agreed to remain as the 42-story tower’s anchor tenant through 2032. UBS occupies floors eight to 20, 37, 38 and 39. UBS’s lease was set to expire in 2020.

The building, which RXR bought from a partnership between AXA Financial and JPMorgan Asset Management, is nearly full with tenants. AIG and Morgan Stanley provided RXR with financing for the purchase. Adam Spies and Doug Harmon, sales brokers with Eastdil Secured, handled the transaction for the sellers.

The $1.7 billion acquisition is the biggest in the city so far this year, though it will likely be eclipsed by Citibank’s planned $1.8 billion purchase of 388-390 Greenwich St., which is scheduled to close next month. Citibank has its world headquarters in that TriBeCa property.

The deal for 1285 Sixth Ave. is the largest completed by RXR since the company began buying buildings six years ago. In a recent conversation with Crain’s, RXR founder Scott Rechler said the value of his company’s holdings had reached about $13 billion—a figure that would make RXR, a privately owned firm, the third largest office owner in the city behind only Vornado Realty Trust and Boston Properties, both publicly-traded real estate investment trusts.


Published: May 20, 2016
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.