RXR CEO Scott Rechler got a lot of attention last week when he disclosed in a Financial Times interview that RXR is preparing to suspend debt payments on several older Manhattan office properties and "give the keys back to the bank."
Rechler told FT that RXR conducted an "exhaustive" review of its office portfolio and determined that up to 10% of its older office assets were becoming "competitively obsolete" as vacancies persist and office tenants continue to migrate to newer Class A buildings.
The RXR chief, who has confirmed the company is evaluating two buildings—one in Brooklyn and another in Manhattan—as potential office-to-apartment conversions projects, did not disclose how many properties RXR is prepared to surrender to lenders.
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