Japanese Investor Takes 150K SF at RXR’s 1285 Sixth Avenue

For the second time in a matter of months, Scott Rechler is celebrating a huge deal at 1285 Sixth Avenue.

Mizuho Financial Group, the parent company of Mizuho Americas, took 151,000 square feet at RXR’s Midtown Manhattan building, according to Crain’s. The sublease was initially disclosed in Colliers’ monthly office leasing report.

Mizuho Americas already leases 382,000 square feet a few doors down at Rockefeller Group’s 1271 Sixth Avenue and it’s unclear if the company plans to do anything with that space. It’s also not immediately clear who Mizuho is subleasing its 1285 Sixth Avenue space from.

Regardless, it’s another feather in Rechler’s cap. Late last year, law firm Ropes & Gray signed a 430,000-square-foot lease at 1285 Sixth Avenue, representing one of the year’s biggest leases in Manhattan. Ropes & Gray occupies 300,000 square feet at 1211 Sixth Avenue, so it’s adding more than 100,000 square feet in its relocation.

Other tenants at the 1.6 million-square-foot property include UBS and Omnicon Group. As of November, the building was fully leased, though that included Paul Weiss’ 550,000-square-foot lease; the firm is relocating elsewhere. Asking rents range from $72 to $87 per square foot.

In 2023, RXR negotiated a loan modification with Morgan Stanley and AIG at 1285 Sixth Avenue, infusing $220 million of equity to enhance reserves and pay down a $980 million balance. The interest rate jumped, while the maturity date was extended five years.

In February, tenants leased 3.2 million square feet of office space in Manhattan, according to Colliers, representing a 12.5 percent decrease from January, but a 38.3 percent increase year-over-year. The vacancy rate in Manhattan fell to 16.1 percent. The average asking rent in the borough was $73.82 per square foot, up from the previous month, but down from last year.

— Holden Walter-Warner