"RXR brought in San Francisco-based hedge fund Farallon Capital Management as an investor in the 33-story tower that serves as RXR's headquarters, sources told The Real Deal. Farallon's investment values the 627,000-square-foot tower at somewhere between $190 million and $200 million, according to a source familiar with the deal. That figure is significantly below the $260 million in debt that RXR put on the property in 2022, when it secured a refinancing from Bank of America and the Carlyle Group."
"As part of this new deal, Rechler restructured the property's debt. One person familiar said the lenders agreed to split the mortgage into a primary A note and a B hope note that will be repaid if the building performs well. The deal is notable since Bank of America and Carlyle Group provided not that long ago, in the thick of the work-from-home era, when lenders were exercising extreme caution with office properties."
"Rechler described 75 Rock as a digital asset that is 95 percent leased to companies like Merrill Lynch, American Girl and Guidehouse, with record rents exceeding $100 per square foot. We've never wavered in our belief in New York City's office market, but we're disciplined about backing the right assets, he said in a statement. The recapitalization of 75 Rock reflects our conviction that premier properties in world-class locations will continue to outperform."
RXR restructured 75 Rockefeller Plaza by bringing Farallon Capital Management in as an investor and recapitalizing the 627,000-square-foot, 33-story headquarters. The investment values the tower at roughly $190–$200 million, well below the $260 million debt placed on the building in 2022. Lenders agreed to split the mortgage into a primary A note and a B hope note contingent on building performance. The property is 95 percent leased to tenants including Merrill Lynch, American Girl and Guidehouse, with record rents above $100 per square foot. The move represents RXR's seventh recapitalization in two years under its 3R strategy.
Read at therealdeal.com
Unable to calculate read time
Collection
[
|
...
]