By Hiten Samtani, The Real Deal
Westbrook Partners and RXR Realty closed on the purchase of 47 Hall Street, a 550,000-square-foot property just south of the Brooklyn Navy Yard, for $161 million, sources told The Real Deal. Barry Sternlicht’s Starwood Capital Group is acting as the lender on the deal, sources said. Starwood provided a roughly $90 million acquisition loan and will cough up another $71 million for redevelopment costs.
The transaction, which closed for north of $300 per square foot, is one of the bigger investment sales deals in Brooklyn. The sellers — a partnership including Rubin Schron’s Cammeby’s International, Eli Fruchthandler and Bruce Federman — had been declining to renew leases at the building prior to the sale, as TRD reported in September.
Westwood Realty Associates’ Steven Vegh, who was the sole broker on the sales transaction, confirmed the sale but declined to comment further. Representatives for RXR, Starwood and Westbrook didn’t immediately respond to requests for comment, but sources said the partners are planning to convert the property into Class-A office space for tech and creative tenants. The total project cost, including the acquisition and redevelopment, is said to be close to $290 million.
An HFF team composed of Christopher Peck, Michael Tepedino and Steven Klein represented RFR and Westbrook in the financing deal. Peck confirmed the loan deal but declined to comment further.
The RXR platform manages 68 commercial real estate properties and investments with an aggregate gross asset value of approximately $18.8 billion, comprising approximately 30.4 million square feet of commercial properties, inclusive of approximately 6.0 million square feet of buildings securing debt and preferred equity investments, a multi-family residential portfolio of approximately 2,600 units under operation or development, and control of development rights for an additional approximately 3,700 multi-family and for sale units in the New York Metropolitan area as of March 31, 2019. 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.