RXR Realty has entered an agreement to purchase the 40-story office tower at 450 Lexington Avenue, the Wall Street Journal reported. The price Istithmar, the owner, will receive for the building is unclear, but the Journal said the deal would value the building, located between East 44th and East 45th streets, at more than the $600 million Istithmar paid for it in 2006.
RXR had previously purchased nearly half of the $600 million in debt on the 910,000-square-foot building. The debt matured this week, giving RXR a leg up in negotiations with Istithmar, the private equity arm of Dubai World that invested heavily in Manhattan property during the boom. The tower is almost fully occupied with tenants, led by law firm Davis Polk & Wardwell, which recently settled a rent dispute over its 20 floors.