American Realty Capital outmaneuvers RXR for $1.45B Worldwide Plaza stake

But jilted investor plans to continue with litigation over financial analyses

TRD New York /
Nov.November 01, 2013 03:13 PM

RXR Realty has lost out on a bid to pick up Worldwide Plaza, with American Realty Capital snagging a 48.9 percent stake and right to buy for a total of roughly $1.45 billion.

American submitted an offer rivaling RXR’s in early October, a move that prompted RXR to file a lawsuit seeking to block the sale of the 59-story, 1.8 million-square-foot tower. But Judge Shirley Werner Kornreich ruled Wednesday in New York State Supreme Court that the owners — a partnership of George Comfort & Sons, DRA Advisors, RCG Longview and Ramius Capital — were within bounds to back out of talks with RXR after the company asked for another extension to close the deal.

RXR’s problem seemed to come from its inability to secure approvals from Wells Fargo, which administers the tower’s securitized mortgage, Crain’s reported.

“One of the things that was frustrating for the sellers was that we had no certainty of closing,” Martin Luskin, an attorney with Blank Rome, who represented the sellers in the lawsuit, told Crain’s. “But with American Realty Capital, we got a deal that was structured in a way that would allow us to close.”

RXR, headed by Scott Rechler, is poised to launch a suit seeking damages against American Realty Capital, RXR attorney Stephen Meister told Crain’s, for the firm’s alleged theft of RXR’s financial analyses of Worldwide Plaza in preparation for its ill-fated bid. [Crain’s]Julie Strickland


Related Articles

arrow_forward_ios
620 Sixth Avenue and RXR Realty's Scott Rechler (Credit: Getty Images, RXR Realty)

RXR gets $400M+ from Goldman Sachs to refi Sixth Avenue building

550 Madison (Credit: Gensler)

Renderings revealed for 550 Madison’s renovated lobby

From left: WeWork CEO Adam Neumann, 630 Sixth Avenue, and RXR Realty CEO Scott Rechler

WeWork is taking 200K sf at RXR Realty’s
620 Sixth Avenue

The We Company CEO Adam Neumann and RXR Realty CEO Scott Rechler and 75 Rockefeller Plaza (Credit: Getty Images and RXR Realty)

WeWork is going to manage office space at RXR’s 75 Rock

From left: Airbnb CEO Brian Chesky, 75 Rockefeller Plaza, and RXR Realty CEO Scott Rechler (Credit:RXR Realty and Getty Images)

Airbnb, RXR are converting a portion of Rockefeller Center

Airbnb leads $160M funding round alongside RXR, Tishman for hospitality startup

Airbnb leads $160M funding round alongside RXR, Tishman for hospitality startup

Scott Rechler’s RXR nearing unorthodox partnership deal with Airbnb

Scott Rechler’s RXR nearing unorthodox partnership deal with Airbnb

RXR closed $800M in debt over two days

RXR closed $800M in debt over two days

arrow_forward_ios