Tuesday, January 15, 2013

RXR Buying Leasehold at 75 Rockefeller Plaza

75 Rockefeller PlazaRXR Realty has agreed to acquire a 99-year leasehold interest in 75 Rockefeller Plaza, taking control of leasing and management of the 630,000 square-foot tower. According to a Bloomberg report, RXR Realty has positioned itself as a major player in the New York office market, with this transaction bringing their Manhattan portfolio to 6.5 million square feet, all acquired since 2009. "They have been super-active," said Joseph Harbert, eastern regional president of Colliers International, a commercial-property brokerage that isn't involved in the deal. "They seem to be the kinds of guys who want to hold onto these assets and not flip them. They're buying long-term projects."

Late last year, Mohamed Al Fayed, the building's owner, placed 75 Rockefeller Plaza on the market, hiring an investment sales team from Cushman & Wakefield to market the property, offering a leasehold interest instead of an actual ownership stake in the tower. In September, RXR Realty moved into the lead in the auction to take control of 75 Rockefeller Plaza, which would allow the buyer to rent the skyscraper long term, according to a Commercial Observer article. Bloomberg's source noted that RXR has plans to execute a complete renovation that could cost more than $100 million, and would have tenants vacate the building by September 2014 to execute the improvements, which should be completed by the third quarter of 2015.

75 Rockefeller Plaza, also known as the Esso Building and Time Warner Building, was completed in 1947, and at the time was the tallest completely air-conditioned building in New York City. The 33-story skyscraper is fully leased to Time Warner, but the company's commitment there expires in 2014.

For more news and information visit Blumberg Capital Partners.

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