The Real Deal New York

RXR Realty’s 99-year lease on 75 Rockefeller begins

Firm faces departure of sole tenant and making the pricey lease profitable

August 27, 2014 01:45PM

  • Print
From left: Scott Rechler and 75 Rockefeller Plaza

From left: Scott Rechler and 75 Rockefeller Plaza

Scott Rechler of RXR Realty has roughly a century to prove naysayers wrong.

The clock is now ticking on RXR Realty’s 99-year lease on 75 Rockefeller Plaza, the New York Post reported. The Real Deal first identified RXR as a potential manager for the 60-story office tower in September 2012. The firm completed the terms of the $420 million lease the following December, according to the Post.

RXR is embarking on a complete renovation of the 630,000-square-foot building owned by Mohamed Al-Fayed.

Questions have been raised over the financial viability of the project. Analysis by the Wall Street Journal last year determined that RXR would have to charge $80 per square foot to make the deal work out, though office space in the area commanded significantly lower rents at the time.

RXR also faces another challenge with the departure of Time Warner this year, which had the lease on the building and subleased space to other companies. [NYP, 2nd]Tom DiChristopher

  • Mike Kennedy

    Donald Trump should be elected President of USA!

  • Mike Kennedy

    The treatment of Eliot Spritzer by the fat teeny tiny men at Goldman Sachs is un American.

MENU

Subscribe to our email newsletters

New York Real Estate News
South Florida Real Estate News