RXR Realty, which reached a deal to pay $605 million for a 40 percent stake in One Worldwide Plaza in June, has initiated a lawsuit over an acquisition gone awry.
RXR’s deal set up a partnership interest, led by real estate investment firm George Comfort & Sons, in the 1.8 million-square-foot building, and it was widely assumed that RXR would pick up the remaining interest in the months to come. But along the way, RXR worked with American Realty Advisors to jointly invest in the deal, and the latter ultimately launched talks with George Comfort & Sons to buy the entire building itself.
According to the suit, American used RXR’s financial analyses and decided it could pay a higher price. George Comfort & Sons then allegedly ended the sale with RXR to pursue an arrangement with American instead.
The suit aims to either uphold RXR’s original contract or pay compensatory damages to walk away.
George Comfort declined to comment to Crain’s, but a source close to the firm said the deal was already terminated before talks began with American over concerns about RXR’s ability to arrange financing.
RXR and American could not immediately be reached for comment.
Scott Rechler’s RXR has not been scared away from the property buying game, of course. The firm recently bid on 1 Chase Manhattan Plaza, the Financial District office tower, as The Real Deal reported. [Crain’s] – Julie Strickland