As RXR divides its assets between “digital” and “film,” Scott Rechler’s firm will be looking for more of the former in the credit world.
RXR is expanding a credit partnership with Liberty Mutual to deploy up to $1 billion in the multifamily sector, according to a statement first reported by Bloomberg. The partners will specifically look at senior loans, construction loans, subordinate financing and flexible preferred equity.
“We see this as a generational opportunity to participate in the credit space and help re-balance borrowers’ loans,” Rechler said in a statement.
The partners are aiming to take advantage of the tranche of multifamily loans set to mature soon. Debt issued in 2021 and 2022 came when prices were high and interest rates were low, creating an opportunity for backers with big bucks to fill a growing gap in the financing market.
Liberty Mutual Investments and RXR have a partnership dating back to 2010, when the insurance unit backed an RXR fund. Since then, Liberty has led a round of $250 million in bond financing for RXR’s management unit.
Last year, RXR originated more than $1 billion in loans and is eyeing even more originations this year. The firm recently hired Steven Schwartz, previously of JPMorgan Chase and H.I.G. Realty Credit Partners, to run its credit business.
On the other side of the ledger, RXR just closed a $1 billion deal for 590 Madison Avenue with a big private equity loan, representing New York City’s largest investment sale in three years.
Mark Rowan’s Apollo Global Management provided $785 million in debt to finance RXR’s $1.08 billion purchase of the Plaza District office tower from the State Teachers Retirement System of Ohio, sources told The Real Deal.
Earlier this summer, Corebridge Institutional Investments provided a $561 million loan to RXR, Marc Holliday’s SL Green and Apollo for the conversion of 5 Times Square, slated to transform from a 38-story office building into up to 1,250 units of housing, 25 percent of which would be affordable.
Read more
Commercial
New York
Rechler closes $1B deal for 590 Madison with Apollo private equity loan
Development
New York
RXR, Apollo, SL Green land $575M for 5 Times Square