RXR closes on $920M buy of Starrett-Lehigh

August 01, 2011 11:24AM


Scott Rechler, CEO of RXR Realty, and the Starrett-Lehigh Building

Scott Rechler’s RXR Realty this past Friday completed the purchase of the 2.3 million-square-foot office property in Chelsea, the Starrett-Lehigh Building at 601 West 26th Street, for $920 million, the company said in a news release this morning.

The 19-story building, built in 1932, was reported to be in contract in April after being brought to market by Eastdil Secured’s Doug Harmon and Adam Spies. It sold for about $400 per square foot. Tenants in the building include Martha Stuart-Omnimedia and clothing retailer Tommy Hilfiger.

In addition to the sale price, there is a $30 million fee to substitute an old loan, known as a defeasance, a spokesperson for the company said. RXR, based in Uniondale, L.I., has ownership interests in about 17.1 million square feet of commercial space, including 340 Madison Avenue and 1330 Sixth Avenue, both in Midtown.

The Starrett-Lehigh Building occupies the entire block from 26th to 27th streets and from 11th to 12th avenues.

The New York Post reported on Friday that RXR partnered with Public Sector Pension Investment Board of Canada on the purchase from investor Mark Karasick and Shorenstein Properties, based in San Francisco. — Adam Pincus