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RXR Realty’s 99-year lease on 75 Rockefeller begins

Firm faces departure of sole tenant and making the pricey lease profitable

From left: Scott Rechler and 75 Rockefeller Plaza
From left: Scott Rechler and 75 Rockefeller Plaza

Scott Rechler of RXR Realty has roughly a century to prove naysayers wrong.

The clock is now ticking on RXR Realty’s 99-year lease on 75 Rockefeller Plaza, the New York Post reported. The Real Deal first identified RXR as a potential manager for the 60-story office tower in September 2012. The firm completed the terms of the $420 million lease the following December, according to the Post.

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RXR is embarking on a complete renovation of the 630,000-square-foot building owned by Mohamed Al-Fayed.

Questions have been raised over the financial viability of the project. Analysis by the Wall Street Journal last year determined that RXR would have to charge $80 per square foot to make the deal work out, though office space in the area commanded significantly lower rents at the time.

RXR also faces another challenge with the departure of Time Warner this year, which had the lease on the building and subleased space to other companies. [NYP, 2nd] – Tom DiChristopher

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Midtown Office MarketRXRTime Warner