RXR and Walton Street Capital now want to sell 237 Park in full

Midtown office tower’s owners opted to refi instead of sell 49% interest last year

New York /
Jun.June 12, 2018 03:15 PM

RXR Realty’s Scott Rechler, Walton Street Capital’s Jeffrey Quicksilver and 237 Park Avenue (Credit: RXR and Walton Street)

As the city’s investment-sales market slowed to a crawl last year, Walton Street Capital attempted to sell its 49 percent stake in one of Midtown’s trophy buildings, 237 Park Avenue.

After a few months passed without a deal, the Chicago-based private equity firm took it off the market, and, along with partner RXR Realty, opted for a refinancing of $850 million. The move proved to be one of the prime examples last year of owners scrapping sale plans and instead tacking on fresh debt.

Now, Scott Rechler’s RXR and Walton Street want to sell the tower in full, with an unofficial price tag of around $1.4 billion, sources told The Real Deal.

The 21-story, 1.25 million-square-foot office tower at East 46th Street is home to JPMorgan Chase, advertising agency J. Walter Thompson, the Canadian consulate  and New York-Presbyterian Hospital. The medical center paid $250.8 million last year for a 30-year, 500,000-square-foot leasehold condominium.  And in recent months, JPMorgan signed for a renewal and expansion — by an undisclosed amount — at the building, sources said.

Sources said the recent leasing boost – from New York-Presbyterian and JPMorgan – led the owners to reconsider their shelved sale plans. Depending on the bidders and their offers, the firms will decide whether to sell at all, sources said.

RXR and Walton Street have also pumped significant capital into the property. They bought it from Lehman Brothers Holdings in 2013 for $800 million, and sunk $100 million into a renovation. Morgan Stanley and Societe Generale provided the refinancing last year.

If the tower were to sell for $1.4 billion, it would be one of the priciest commercial deals of the year so far – behind Google’s $2.4 billion purchase of the Chelsea Market building and Maefield Development’s $1.53 billion buyout of its partners at 20 Times Square.

A Cushman & Wakefield team led by Adam Spies and Doug Harmon is marketing the property for sale. Cushman was previously retained to market the minority stake, and brokered the refinancing.

Representatives for RXR, Cushman and JPMorgan declined to comment, and a Walton Street spokesperson did not respond to requests for comment.

RXR recently partnered with Olayan Group for a $300 million redevelopment of the Sony Building at 550 Madison Avenue  and teamed with LBA Realty to buy three Queens development sites for $72 million.


Related Articles

arrow_forward_ios
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
Hamptons businesses desperate for workers
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Cushman & Wakefield CEO Brett White (Cushman)
Cushman eyeing M&A opportunities post-pandemic
Cushman eyeing M&A opportunities post-pandemic
Andrew Yang (Getty, iStock)
Yang targets vacant lots with $900 million tax plan
Yang targets vacant lots with $900 million tax plan
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
Google CEO Sundar Pichai (Getty, iStock)
Google’s hybrid model will allow 20% of employees to work remotely
Google’s hybrid model will allow 20% of employees to work remotely
Illustration of Amazon's Jeff Bezos (Photo illustration by Kevin Rebong for The Real Deal)
No room in the warehouse: Amazon fuels shortage
No room in the warehouse: Amazon fuels shortage
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...