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RXR Sells Interest in 61 Broadway

NEW YORK CITY—The Lower Manhattan office tower was purchased by a Chinese investment firm that likes to pick up value add investments with strong operators.

By John Jordan | johnjordan | | Updated on April 22, 2016
61 Broadway RXR Realty acquired the 33-story office building for approximately $330 million in 2014.
NEW YORK CITY— RXR Realty has sold a 49% interest in 61 Broadway, an office tower in the Financial District here, to an affiliate of China Orient Asset Management for approximately $215.6 million. The purchase price was based on a gross valuation of $440 million for the 33-story, 787,000-square-foot office building, RXR Realty states in its announcement of the transaction. RXR Realty acquired the building in March 2014 in a deal valued at approximately $330 million. According to RXR’s website, recent capital improvements totaling $8 million at the property include upgraded elevators, sprinkler systems, HVAC, bathrooms and common corridors. The Downtown office tower was built in 1914. “This investment is consistent with our US real estate investment strategy, which has been to acquire value add assets in partnership with sophisticated and institutional US operators,” says Roy Chen , managing director and head of US real estate of China Orient. Tenants at the property include architectural firm Bjarke Ingels Group and securities firm Samuel A. Ramirez & Co . Innovation think tank Human Condition Global , recently took a full floor of more than 24,400 square feet and data governance company Collibra recently leased 12,000 square feet at the property. “We are thrilled to have China Orient join us as our new partner and are pleased that we were able to create meaningful value by upgrading 61 Broadway and executing more than 100,000 square feet of leases at extremely attractive rents,” says RXR chairman and CEO Scott Rechler .   With the “next level of value creation” planned for the property, he adds, the ownership intends to recapture space and make that space available at higher rents.

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