RXR and Walton Street Capital near deal to sell 237 Park Ave stake to David Werner

Deal values Grand Central-area building at $1.25B

New York /
Jan.January 23, 2019 01:30 PM

237 Park Avenue and Scott Rechler (Credit: RXR Realty)

David Werner is in contract to buy roughly 40 percent of 237 Park Avenue, valuing the Grand Central-area office building at $1.25 billion.

Werner put together a syndicate of investors to buy a stake from owners RXR Realty and Walton Street Capital, sources told The Real Deal.

Scott Rechler’s RXR Realty and Walton Street – the Chicago-based real estate private equity firm – will retain the remaining 60 percent ownership stake in the building, according to Real Estate Alert, which first reported news of the contract.

A Cushman & Wakefield team led by Adam Spies and Doug Harmon brokered the deal on behalf of the sellers.

The transaction values the 1.25 million-square-foot building at $1,000 per square foot.

RXR and Walton bought the 21-story building out of bankruptcy in 2013 for $800 million, and invested $100 million in renovations. Then, in 2017, Walton Street put its 49-percent ownership stake up for sale.

But the investment-sales market tanked that year, and the partners decided to refinance the property with an $850 million loan. (Werner will assume a proportional share of that debt.)

Last year, RXR and Walton Street again returned to the market, this time looking to sell 237 Park Avenue in its entirety.

The building is 98 percent occupied, with tenants including New York Presbyterian Hospital, J.P. Morgan and J. Walter Thompson.

Werner, meanwhile, teamed up with Alexandria Real Estate Equities and DWS Group last year to buy Pfizer’s headquarters at 219 and 235 East 42nd Street for $357 million – another deal brokered by the Cushman team.


Related Articles

arrow_forward_ios
A photo illustration of Related Companies' Stephen Ross (Getty)
Related proposes 1,500-room resort in Hudson Yards casino bid
Related proposes 1,500-room resort in Hudson Yards casino bid
Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Council member Pierina Ana Sanchez and RSA’s Joseph Strasburg (Getty; Twitter)
Citing Bronx fire, Council pushes building violation crackdown
Citing Bronx fire, Council pushes building violation crackdown
SB Development’s Joseph Stern and Northwind’s Ran Eliasaf with rendering of Nova (LinkedIn, NOVA)
SB Development, Hazelton Capital score $62M loan for LIC condo tower
SB Development, Hazelton Capital score $62M loan for LIC condo tower
Illustration of Mayor Eric Adams (Getty; Illustration by Kevin Rebong for The Real Deal)
Oh, rats! Eric Adams contests summons for infestation
Oh, rats! Eric Adams contests summons for infestation
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
arrow_forward_ios

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

Loading...