RXR to raise $1B pandemic fund

Scott Rechler’s firm targeting assets that will thrive post-Covid

RXR Realty's Scott Rechler (Getty; iStock)
RXR Realty's Scott Rechler (Getty; iStock)

RXR Realty is planning to raise $1 billion to invest in sectors the firm thinks will thrive after taking a hit from the pandemic.

The firm is talking to potential investors about its RXR Real Estate Market Dislocation & Mega-Trends Fund, Bloomberg News reported. The company plans to find “pockets of distress,” such as non-performing loans and borrowers in need of rescue financing.

Areas of focus will include sectors RXR believes will be in high-demand in a post-pandemic world, including logistics, telehealth and residential.

The fund will target levered returns ranging between 12 percent and 16 percent after fees, according to a marketing presentation. A representative for RXR declined to comment.

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The company, headed by Scott Rechler and Michael Maturo, raised $500 million last year for its first opportunity zone fund.

For its dislocation fund, RXR has already identified potential acquisitions in Manhattan, Long Island and Westchester. [Bloomberg News] — Rich Bockmann