(Save the date: RealShare New York comes to the Grand Hyatt, New York, NY, October 9.)
NEW YORK CITY-After acquiring a controlling stake in 620 Avenue of the Americas last fall, RXR Realty LLC is now looking to take full ownership of the building. Unnamed sources confirm to GlobeSt.com that RXR will be buying up the remaining 45% stake in the 700,000-square-foot Ladies Mile property within the next several weeks.
As GlobeSt.com reported, RXR previously purchased a 55% stake in the building in September 2011 and was afforded the option to acquire the remaining interest in the Flatiron property from joint venture partners the Chetrit Group, YL Real Estate and Bonjour Equities at a later date. At the time, the building was valued under the deal at $500 million.
Scott Rechler, chairman and CEO of RXR Realty, tells GlobeSt.com in an e-mail that the company has ”not purchased it yet,” but expects to exercise its option in the next 60 days.
Once complete, the deal is a continuing sign of RXR’s overall Manhattan growth strategy. Over the last 18 months, RXR has acquired interested or made investments in seven New York City assets encompassing 6.6 million square feet, including the much-talked about acquisition of the Starrett-Lehigh Building in West Chelsea for $920 million. The company is also expecting to close on 450 Lexington Ave. by the end of the summer.
William Elder, EVP and managing director of RXR, previously told GlobeSt.com that the company’s enthusiasm for 620 Sixth was spurred by the creative and tech boom in the neighborhood. “The whole creative class story has been of interest to us since we re-emerged in New York 18 months ago,” Elder says. “We also loved the bones of the building.”
The property is occupied by big box retail tenants such as Bed, Bath & Beyond, TJMaxx and Marshalls. Eastdil Secured is serving as the seller’s broker.
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