RXR eyes 1 Chase Manhattan Plaza acquisition

Company would gut renovate office tower but skip a residential conversion

New York /
Sep.September 19, 2013 03:12 PM

Scott Rechler’s RXR Realty is considering purchasing 1 Chase Manhattan Plaza, the 60-story office tower in the Financial District owned by JPMorgan Chase.

RXR would maintain the 2.2 million-square-foot building, which hit the market in August, as a commercial office tower, despite speculation that it’s a candidate for a residential or hotel conversion, Rechler told The Real Deal.

The real estate investor, who has been on an acquisition streak of late, appeared today as the keynote speaker at a global investment conference hosted by the Metropolitan New York Chapter of the Appraisal Institute.

He declined to comment on how much RXR would pay for the building or how far along discussions were, and said he was unaware of what other bidders were circling the tower, if any.

CBRE brokers Darcy Stacom and Bill Shanahan are marketing the property on behalf of JPMorgan. The building could trade for between $600 million and $1 billion, according to previous reports. Stacom and Shanahan were not immediately available to comment.

“Lower Manhattan is in an awkward stage,” Rechler said, referring to opportunities for investment in the Financial District. “That’s an area we’re focusing on because when you get through that awkward phase it’s going to Be An Incredible Place. If you have patience, it’s going to be incredibly successful.”

If RXR buys the building, the company would take advantage of 1 million square feet of upcoming vacancies at the tower to gut renovate it in a similar fashion to 75 Rockefeller Plaza, Rechler said. At “75 Rock,” RXR is hoping to increase office rents by $30 per square foot – to $100 a foot from around $70 – by attracting a new tenant roster lured by the upgrade, as previously reported.

Chase Manhattan Plaza was designed as an iconic commercial skyscraper by David Rockefeller in the 1960s, and the city would likely rather keep it as office space, Rechler said. Besides, he noted, a residential conversion would be problematic given the building’s landmark status, granted in 2009.

Still, Rechler said he wouldn’t expect to see success overnight in the neighborhood.

“It’s going to be challenging for a few years in Lower Manhattan,” he said. “I’m comfortable with that.”


Related Articles

arrow_forward_ios
Joan Collins and 110 East 57th Street #8EFG (Getty, BHS)

Soap star Joan Collins lists longtime Midtown pied-à-terre

Soap star Joan Collins lists longtime Midtown pied-à-terre
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Eric Malley was arrested earlier this week. (Getty)

Feds indict NY real estate exec in $50M fraud scheme

Feds indict NY real estate exec in $50M fraud scheme
(iStock)

Manhattan asking retail rents continue downward spiral

Manhattan asking retail rents continue downward spiral
New Yorkers signed leases in record numbers last month. (Getty)

Manhattan, Brooklyn rental leasing hit 12-year high in December

Manhattan, Brooklyn rental leasing hit 12-year high in December
RXR CEO Scott Rechler with 56-19 Grand Avenue, Queens (Getty, RXR)

These were the top outer-borough loans in December

These were the top outer-borough loans in December
President Donald Trump (Getty)

Banks, business partners cut Trump Org ties after Capitol attacks

Banks, business partners cut Trump Org ties after Capitol attacks
109 East 79th Street and 1010 Park Avenue (Google Maps)

Upper East Side trophy property tops luxury deals — again

Upper East Side trophy property tops luxury deals — again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...