RXR planning first NYC resi development

BY Rick Bockmann, Real Deal

Scott Rechler’s RXR Realty, owner of prestige office properties like the Helmsley and Starrett-Lehigh buildings, is planning to tackle its first residential development in the city.

RXR purchased the leasehold on a parking lot at 810 Fulton Street on the border of Fort Greene and Clinton Hill in Brooklyn for $28.7 million, Crain’s reported. The firm plans to build a 10-story rental building with 363 apartments on the site.

The seller, GFI Development, reached an agreement with the city to set aside 20 percent of the units as affordable housing, and secured 421a benefits by pouring a part of the foundation last year before the program expired.

RXR will restart construction later this year and expects to be finished toward by late 2018 or early 2019.

“As costs rise for commercial and residential space in core New York markets, this will create demand in new areas, such as Fort Greene and other emerging submarkets,” RXR CEO Scott Rechler in a statement.

Two years ago, RXR purchased a leasehold from GFI on large adjacent office property at 470 Vanderbilt for nearly $200 million. The estate of Sol and Lillian Goldman owns the fee position on both properties.

RXR will pay the same undisclosed rent that GFI was paying to the Goldmans until the lease expires in 2077.

Published: August 10, 2016
Filed Under: Acquisition

The RXR platform manages 69 commercial real estate properties and investments with an aggregate gross asset value of approximately $18.1 billion, comprising approximately 24.6 million square feet of commercial properties, inclusive of a multi-family residential portfolio of approximately 2,600 units under operation or development, and control of development rights for an additional approximately 3,600 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.