RXR close to inking $1.7B contract to buy 1285 Sixth

If sold, AXA, JPMorgan-owned tower would be among priciest-ever NYC building deals

TRD New York /
Dec.December 03, 2015 02:54 PM

Scott Rechler’s RXR Realty is close to entering contract to buy a 39-story office tower at 1285 Sixth Avenue from AXA Financial and JPMorgan Chase for about $1.7 billion, The Real Deal has learned. The sale, if it goes through, would be one of the largest deals for a single New York City building ever.

The 1.61 million-square-foot tower, located between West 51st and 52nd streets, is fully occupied, with Swiss bank UBS AG serving as the 700,000-square-foot anchor tenant.

AXA Financial put 1285 Sixth Avenue and a 51-story property at 787 Seventh Avenue on the market in August, and is looking to net between $3.5 billion and $4 billion for the pair, sources said.

Eastdil Secured’s Douglas Harmon and Adam Spies, who declined to comment, are representing the seller, an equal partnership between AXA Financial and JPMorgan.

Behind the story:

1285 Sixth Avenue

RXR Realty

RXR beat out competition from Chinese and Canadian pension and sovereign wealth funds, sources told TRD.

AXA Financial, formerly known as the Equitable Companies, bought its 50 percent stake in 1285 Sixth from AXA Equitable Life Insurance Company for $587.5 million in 2012, records show.

The deal would follow another high-profile purchase from RXR Realty, which partnered with Blackstone Group to buy the Helmsley Building at 230 Park Avenue for $1.2 billion.

If the deal closes, it will be in the top 10 of the priciest New York City single-building sale of all-time, behind 11 Madison Avenue ($2.6 billion), 1095 Sixth Avenue ($2.2 billion), the Waldorf-Astoria hotel ($1.95 billion), the Crown Building ($1.77 billion) and the Google building ($1.77 billion). The largest investment sales deal overall this year, however, is Blackstone Group and Ivanhoe Cambridge’s pending $5.3 billion purchase of the Stuyvesant Town-Peter Cooper Village complex.

Related Articles

Scott Rechler and clockwise from top left: 2455-2457 Third Avenue, 150 West 48th Street and 42-11 9th Street (Credit: Google Maps, Getty Images)

RXR’s Long Island City development was the biggest new project filed in December

RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives

Clockwise from left: JLL's Michele Mahl, Savills' Peter Hennessy, Eastdil Secured's Will Silverman, Christie’s Brian Meier, Nest Seekers' Mike Fabbri and Compass' Charlie Attias 

These were the biggest broker comings and goings of 2019

Jonathan Firestone (Photo credit: Eastdil Secured)

Top Eastdil broker in LA heads to NY to boost capital markets team

Amazon CEO Jeff Bezos and RXR CEO Scott Rechler with 56-19 Grand Avenue in Queens (Credit: Getty Images, Google Maps)

Amazon nears lease at RXR’s Queens warehouse development

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

65 East 55th Street and EQ Office CEO Lisa Picard (Credit: Park Avenue Tower and VTS)

Blackstone looks to sell Park Ave Tower for more than $800M