RXR Realty lands huge refinancing for Starrett-Lehigh Building

Morgan Stanley, New York Community Bank provide $900M loan

New York /
Sep.September 17, 2018 10:00 AM

RXR Realty’s Scott Rechler and the Starrett-Lehigh Building at 601 West 26th Street (Credit: Getty Images and Starrett-Lehigh)

RXR Realty refinanced the Starrett-Lehigh Building with a $900 million loan from Morgan Stanley and New York Community Bank.

The financing, which comes with a five-year term, closed on Thursday, Commercial Observer reported.

RXR will use the new debt to help reposition the 2.3 million-square-foot West Chelsea building, and pay down $525 million previous debt, also from Morgan Stanley and NYCB.

Scott Rechler’s RXR is redeveloping and leasing retail space on the building’s first floor — a project scheduled for completion in 2019. The landlord is also working on two new office leases at the property, which will bring occupancy to 90 percent up from 76 percent.

The new $900 million loan has a $150 million facility earn out, which gets triggered by one of the new tenants signing a lease.

RXR bought Starrett-Lehigh in 2011 for $920 million and pumped $50 million into the property to make improvements to the lobby, common areas and building systems. The landlord in 2015 sold a 49-percent stake in an office portfolio including the property to Blackstone Group. [CO] – Rich Bockmann


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Allure’s Joel Landau and 9036 7th Avenue in Brooklyn (Allure, Google Maps)
Abe Leser’s ailing hospital deal revived for $160M
Abe Leser’s ailing hospital deal revived for $160M
Rudin Management CEO Bill Rudin and 3 Times Square (Getty Images, 3 Times Square, iStock)
Rudin gets $415M refi for 3 Times Square makeover
Rudin gets $415M refi for 3 Times Square makeover
452 Fifth Avenue
Party’s over: Rising interest rates crash CRE’s Covid recovery
Party’s over: Rising interest rates crash CRE’s Covid recovery
Columbia Property Trust CEO Nelson Mills and 799 Broadway (Columbia Property Trust, 799BroadwayNYC.com, iStock)
Columbia Property Trust lands $270M refi at 799 Broadway
Columbia Property Trust lands $270M refi at 799 Broadway
MaryAnne Gilmartin, 44-02 Vernon Boulevard, 98 De Kalb Avenue and Rockrose Development's Justin Elghanayan in Mott Haven (Google Maps, iStock, Getty, Rockrose)
Biggest outer-borough loans topped $1B in May
Biggest outer-borough loans topped $1B in May
Jeff Gural’s GFP borrows $191M on 40 Worth Street
Jeff Gural’s GFP borrows $191M on 40 Worth Street
Jeff Gural’s GFP borrows $191M on 40 Worth Street
arrow_forward_ios

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

Loading...