RXR Realty Completes Acquisition Of 450 Lexington Avenue
September 14, 2012 – (New York) – RXR Realty (“RXR”), a leading real estate operating and investment company in the New York Tri-State area, announced the completion of its acquisition of 450 Lexington Avenue from Istithmar World. The 40-story trophy tower consists of 920,000 square feet of space.
450 Lexington Avenue is approximately 99% occupied by a prestigious tenant roster, including the law firm Davis Polk & Wardwell LLP, the private equity firm Warburg Pincus and Morgan Stanley Smith Barney.
RXR purchased the $300 million mezzanine loan secured by the property over the last two years. It was scheduled to mature on July 11, 2012, contemporaneously with the first mortgage. RXR entered into the contract to acquire the property while ownership was in the midst of a rent re-set process with its largest tenant, Davis Polk & Wardwell LLP. Prior to closing, RXR was able to resolve the rent re-set with Davis Polk and extend their remaining lease term from 10 to 15 years.
“This was a very complex transaction that was two years in the making,” said Scott Rechler, Chairman and CEO of RXR. “It further demonstrates our continuing commitment to and belief in the New York City market where we have acquired over 5 million square feet of space in the past 24 months.”
Completed in 1992, the Skidmore Owings and Merrill designed property rises above the landmark U.S. Post Office site at 45th Street. The AAA trophy building is located next to Grand Central Terminal and is one of the newest buildings in the Midtown / Grand Central Terminal area. The building exterior is clad in grey Sardinian granite and features a repeating diamond motif highlighting the building’s crown. The interior finishes are among the highest quality in all of New York City.
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 106 operating properties containing approximately 18.0 million square feet.