RXR Realty And Walton Street Close On 237 Park Avenue
$100 Million Capital and Leasing Program Planned for Park Avenue Office Building
October 28, 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, L.L.C. (“Walton Street”) announced today that they have closed on their acquisition of 237 Park Avenue.
Earlier this year RXR and Walton Street contracted to acquire the 21-story Park Avenue office building, located in the heart of the Grand Central District, between 45th and 46th Streets. Since then, they have worked with the seller, an entity controlled by Lehman Brothers Holdings Inc., to finalize the requisite approval process for the assumption of the existing first mortgage.
“We have been working over the last couple of months with a team of architects, engineers and other professionals to help us bring our vision for the property to life.” said Scott Rechler, RXR’s Chairman and CEO. “We are very happy with our plans for what will be a truly transformative re-development of this superior Park Avenue building.”
RXR and Walton Street hired Dan Shannon of the architectural firm of Moed de Armas and Shannon to spearhead the project. Improvements to the building will include a $40 million, complete renovation to the lobby and 21-story atrium, as well as to DePew Place. RXR and Walton Street plan to modernize the façade of the Lexington Avenue and 45th/46th street retail space, encompassing more than 30,000 square feet, by installing a full-height glass curtain wall. This modernization should attract higher-end retailers and also allow for larger users to have a two-floor presence with spectacular identity. RXR and Walton Street also plan to replace the façade and create unique outdoor areas on several of the top floors of the building over the next few years.
RXR and Walton Street have retained Jones Lang LaSalle to lease the 240,000 square feet of office space and Newmark Grubb Knight Frank to lease the retail space available at the property. “We are happy to be partnering with Mitch Konsker, Paul Glickman, Mitti Liebersohn and Cynthia Wasserberger on the office space and Jeffrey Roseman and Marc Frankel on the retail space,” said William Elder, RXR’s Executive Vice President and Managing Director for New York City. “With the ability to provide prospective tenants with contiguous blocks of up to 200,000 square feet of the highest quality office space, we hope to attract high-end technology, financial and service companies that recognize the value and benefit of this Park Avenue quality building located steps from Grand Central.”
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 $6.5 billion of assets, comprised of 108 operating properties containing approximately 20.0 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.