NEW YORK (May 23, 2016) — An affiliate of RXR Realty LLC has closed on the $1.65 billion acquisition of 1285 Avenue of the Americas from AXA Financial Inc. advised by AXA Investment Managers – Real Assets and institutional investors advised by J.P. Morgan Asset Management. RXR also signed a long-term lease renewal with UBS to keep its North American headquarters in the 39-story, 1.8 million-square-foot office building.
UBS, the world’s largest wealth manager, agreed to a long-term lease extension, securing their occupancy in more than 900,000 square feet of space through June 2032. RXR had been working with UBS on the extension since December 2015, when RXR agreed to purchase the Sixth Avenue trophy office building.
In addition to UBS, the building also serves as the global headquarters for the premier law firm of Paul, Weiss, Rifkind, Wharton & Garrison LLP, which occupies approximately 550,000 square feet, and the global headquarters for BBDO, part of the Omnicom Group, a leading global marketing and corporate communications company. BBDO has approximately 325,000 square feet of space in the building. “We are excited to close on the acquisition of 1285 Avenue of the Americas and simultaneously execute a long-term renewal with UBS,” said Scott Rechler Chairman and CEO of RXR Realty. “It is only fitting that one of the city’s most prestigious buildings will remain the home to some of the city’s most prestigious companies for decades to come.”
Located between 51st and 52nd Streets, 1285 Avenue of the Americas is a Class-A mixed-use tower featuring office, retail, and storage. RXR plans to upgrade the building’s lobby, modernize the elevator mechanical systems and make improvements to the plaza.
Financing for 1285 Avenue of the Americas was provided to RXR by AIG and Morgan Stanley, with $1.1 billion of acquisition financing and an additional $100 million future funding facility. Doug Harmon and Adam Spies of Eastdil Secured were the sales brokers and represented the seller,. Bob Alexander, Patrick Murphy and Douglas Lehman of CBRE together with Wall Street Realty Corporation (UBS’s Real Estate Broker subsidiary) represented UBS in their lease negotiation. RXR handled the acquisition and lease negotiation internally. Ralph Herzka of Meridian Capital Group represented the buyer in securing the financing.
About RXR Realty LLC
RXR Realty LLC (“RXR”) is a vertically integrated private real estate company with expertise in investment management, property management, development, design, construction, leasing and financing. RXR’s core growth strategy is focused on New York City and the surrounding tri-state area markets. The Company is one of the largest owners, managers, and developers in the New York Tri-State area. RXR’s operating platform manages 87 commercial real estate properties and investments comprising 23.1 million square feet, with an aggregate gross asset value of $12.7 billion, as of December 31, 2015. In addition, RXR has a residential development pipeline of approximately 3,000 residential units in the New York metropolitan area.
About AXA Investment Managers – Real Assets
AXA Investment Managers – Real Assets brings together €65 billion in assets under management, including €50 billion in direct property & infrastructure and €12.6 billion in real asset finance as of end of December 2015. AXA Investment Managers – Real Assets offer a 360° view of real asset markets, investing in both equity and debt, across different geographies and sectors, and via private and listed instrumentsand is the number one property portfolio and asset manager in Europe, and among the largest worldwide. The team has 30 years’ experience managing funds and mandates with 600 professionals in 14 offices around the world, operating in 24 countries and providing us with in-depth knowledge of countries, cities and sectors.
About J.P. Morgan Asset Management – Global Real Assets
J.P. Morgan Asset Management – Global Real Assets has more than $90 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia Pacific, as of March 31, 2016. With a 45-plus year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure and transportation strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. For more information: jpmorgan.com/institutional/global_real_assets
Published: May 23, 2016
Filed Under: Press Releases
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.