The Real Deal New York

RXR and SL Green inch closer to buying stake in One Worldwide Plaza

NY REIT will keep a 50.1% equity interest
September 12, 2017 08:30AM

From left: One Worldwide, Scott Rechler and Marc Holliday

RXR Realty and SL Green Realty have agreed to buy a 49 percent stake in New York REIT’s One Worldwide Plaza, a property valued at $1.73 billion.

The Real Deal first reported that the two companies were in talks for the 1.8 million-square-foot office tower. According to the Commercial Observer, the deal is expected to close in the fourth quarter.

Earlier this year, New York REIT purchased an additional 49.9 percent stake in the trophy tower, bringing its equity interest up to 98.8 percent. If the deal with RXR and SL Green goes through, the REIT will maintain a 50.1 percent equity interest in the property, while George Comfort & Sons will keep its 1.2 percent stake in the building.

RXR has had its eye on One Worldwide for sometime. In fact, the company lobbed a lawsuit at New York REIT in 2013, alleging that it was promised the 49.9 percent stake that the REIT purchased for $220 million.

New York REIT is in the process of liquidating its 4.4 million-square-foot commercial portfolio. The company sold 50 Varick Street last month for $135 million, the first deal to close since the REIT started liquidation. [CO] — Kathryn Brenzel