RXR secured $185M to purchase 61 Broadway

HSBC loaned total of $300 million for acquisition, improvements and leasing
By Rich Bockmann | June 05, 2014 04:50PM

Scott Rechler’s RXR Realty secured more than half of the $300 million used to Purchase The 61 Broadway in the Financial District last month with a loan from HSBC.

The realty firm received $185 million at closing and another $15 million for future capital expenditures and leasing commissions, according to JLL’s capital markets team. The office building measures 786,975 square feet.

“An impressive building backed by best in class sponsorship and located in Manhattan’s highly desirable financial district checks all the boxes in regards to what lenders seek,” said JLL’s Kelly Gaines, who brokered the deal along with Brett Rosenberg. “In addition, the neighborhood is moving toward a ‘live, work, play’ environment, which is gaining significant momentum among today’s work force.”

The majority of the leases in the 33-story building are reportedly set to expire soon, and RXR is looking to lure tech and creative firms attracted by FiDi’s lower rents relative to Midtown South.

JLL’s investment sales team represented former owner Broad Street Development in the sale of the building in March. Broad Street bought the building for $130 million in 2004, records show.

More than 140 loans of $100 million or more were originated last year, The Real Deal reported, with Eastdil Secured leading the way with 20 deals valued at just under $8 billion.