An affiliate of RXR Realty LLC announced the closing of the $1.65 billion acquisition of 1285 Avenue of the Americas, as well as the long-term lease renewal of more than 900,000 square feet to keep UBS's North American headquarters in the office building. The Real Deal first reported that Scott Rechler's RXR Realty was on the verge of a deal to acquire the 42-story office tower, and reports this week that it partnered on the deal with real estate investor David Werner, according to the Commercial Observer, noting that the duo financed the purchase with $1.2 billion in loans from AIG and Morgan Stanley. AXA Financial Inc. sold the property in partnership with JPMorgan Chase & Co.; AXA first put the tower on the market last fall along with 787 Seventh Avenue, which has since been sold to CalPERS; one source noted that both properties had been "institutionally owned for decades," and would likely fetch around $4 billion because they have "institutional-quality tenants [with] high credit and the in-place market rents are significantly below market."
Located between 51st and 52nd Streets and also known as the Equitable Building, 1285 Avenue of the Americas is a Class-A mixed-use tower featuring office, retail, and storage. RXR Realty plans to upgrade the building's lobby, modernize the elevator mechanical systems and make improvements to the plaza. "We are excited to close on the acquisition of 1285 Avenue of the Americas and simultaneously execute a long-term renewal with UBS," said Scott Rechler Chairman and CEO of RXR Realty. "It is only fitting that one of the city's most prestigious buildings will remain the home to some of the city's most prestigious companies for decades to come." In addition to UBS, the building is co-anchored by law firm Paul Weiss Rifkind Wharton & Garrison LLP in 550,000 square feet and Omnicom Group affiliate BBDO, a marketing and communications firm, in 325,000 square feet.
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