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Dealmaker: RXR Recapitalizes Downtown Manhattan Office Tower
RXR Realty, New York, sold a 49 percent stake in Manhattan office building 61 Broadway to China Orient Asset Management Corp., Beijing, China, for $215.6 million.
JLL Vice Chairmen Scott Latham and Richard Baxter and Senior Vice Presidents Anthony Ledesma and Stephen Shapiro led the equity sale team. In addition, JLL Managing Director Kelly Gaines and Vice President Aaron Niedermayer secured $290 million in recapitalization financing for the 786,500-square-foot Class A office asset in Manhattan’s Financial District. Bank of China, Beijing, China, and SL Green, New York, funded the loan.
“Assets with such significant near-term rent upside in a location such as 61 Broadway are few and far between,” Latham said. “With demand for Manhattan office space continuing its impressive run, this was a prime opportunity for RXR Realty to sell a stake in their asset and gain a valuable partner to usher in a new era of success [for the property].”
Gaines noted that Manhattan’s Financial District continues to attract tenants seeking high-end office space, “especially space that lends itself to creative businesses.” He noted that 61 Broadway’s recent infrastructure overhaul and its views of New York Harbor and the Hudson River position the property for strong cash flow. “Lenders believe in the continued strengthening of the downtown office market and are very willing to make loans on the right buildings with the right operators,” he said.
Built in 1916, 61 Broadway is within two blocks of four subway stations and within five blocks of the Fulton Center and the World Trade Center Transportation Hub.