RXR’s Scott Rechler played a perfect hand
RXR Realty Chief Exective Chairman Scott Rechler may have employed a perfect strategy during the downturn, and he’s got the bank balance to prove it — a $1 billion-plus fund whose investors include Rothchild Realty and the Safira family, according to Crain’s. In the last year, RXR has used this fund to invest in over $3.5 billion in Manhattan properties, signing contracts for more than four million square feet of space.
The company’s first Manhattan purchase was the discounted debt on a 556,000-square-foot office condominium at 1166 Sixth Avenue. The firm is in contract to buy 40 percent of the condo, which is between 45th and 46th streets.
When developer Harry Macklowe was forced to hand 1330 Sixth Avenue back to his lenders in 2010, Rechler won the building in a bidding war for $400 million, $100 million less than what Macklowe originally paid for it in 2006.
RXR also bought a 49 percent stake in 340 Madison Avenue between 43rd and 44th streets in a deal that values the building at $570 million. Rechler is now refinancing the property and bringing in an additional partner.
Last month RXR also purchased the Starrett-Leigh building at 601 West 26th Street between 11th and 12th avenues for $900 million from Shorenstein Properties.
Andrew Silberstein, managing director at Rothstein Realty, told Crain’s that executives at RXR “really understand how to create value with real estate and not just financial engineering.” [Crain’s]