RXR Realty and Walton Street To Acquire 237 Park Avenue
RXR partners with Walton Street Capital, plans substantial renovations to the Park Avenue office building
February 12, 2013 – (New York) – RXR Realty (“RXR”), a leading real estate operating and investment company in the New York Tri-State area, and an affiliate of Walton Street Capital, LLC (“Walton Street Capital”) announced today that they have entered into a contract to purchase 237 Park Avenue from an entity controlled by Lehman Brothers Holdings Inc.
Located in the heart of the Grand Central District, between 45th and 46th Streets, 237 Park Avenue is one of the most conveniently located buildings in all of Manhattan, just steps away from Grand Central Terminal and all major transportation. The 21-story building, encompassing approximately 1.25 million square feet of Class A office space, is 80 percent occupied.
RXR, which is partnering with Walton Street Capital for the transaction, plans to make extensive renovations to the building. The extensive work includes newly constructed entrances from Park Avenue and 45th Street, a new lobby and redesigned atrium, new elevator cabs and enhanced retail throughout the first two levels of the building. Plans also call for a new glass curtain wall enclosure on the two top floors of the building, allowing for floor-to-ceiling windows.
“We are excited to have the opportunity to partner with Walton Street Capital to acquire 237 Park Avenue. It is rare that you can purchase a modern office building in such an irreplaceable location at such a significant discount to replacement cost,” said Scott Rechler, Chairman and CEO of RXR Realty. “We look forward to re-energizing 237 Park with a transformative re-development that positions it as one of the most attractive 21st century space alternatives in the Park Avenue/Grand Central market.”
One of the most desirable features of 237 Park Avenue is its expansive, soaring atrium, providing natural light from the top of the building to every floor. This allows every tenant to enjoy light not only from the exterior windows, but also from the interior windows off the atrium. 237 Park Avenue’s floor plates measure over 60,000 square feet and are extremely efficient. They will attract a wide variety of larger tenants in the market, due to the abundance of light and flexible layout that modern, sophisticated tenants demand.
“The acquisition of 237 Park Avenue brings our portfolio to more than 7 million square feet in New York City and rounds out the product type that we have to offer to all types of tenants,” said William Elder, Executive Vice President and Managing Director, NYC for RXR Realty. “We now have the ability to focus on high-end technology, service and financial companies looking for space in excess of 60,000 to 120,000 square feet in the heart of midtown. This acquisition will complement our current midtown assets, which cater to boutique financial and hedge-fund type tenancies, and our midtown south properties, which are desirable to a variety of creative companies.”
About RXR Realty
RXR Realty LLC (“RXR”) is a vertically integrated, private real estate company with expertise in investment management, property management, development, design, construction, leasing and financing. RXR’s core growth strategy is focused on New York City and the surrounding tri-state area markets. RXR Realty is one of the largest owners, managers, and developers in the Tri-State Area with interests in approximately $5.6 billion of assets, comprised of 107 operating properties containing approximately 18.0 million square feet. For more information about RXR, visit www.rxrrealty.com.
About Walton Street Capital
Walton Street Capital, L.L.C. was founded in 1994 and is a private real estate investment company that, through its affiliates, has invested and/or committed to invest approximately $6.4 billion of equity in more than 230 separate transactions in U.S. and international real estate, including the development and acquisition of office, hotel, retail, industrial, multi-family, for-sale residential, senior and student housing, gaming and other assets through both individual, portfolio and company-level transactions with a gross asset cost of over $18 billion.