RXR, Apollo, SL Green pay $8M to City of New York for fee under 5 Times Square

RXR Realty, Apollo Global Management, and SL Green Realty through the entity RXR 5TS Owner LLC paid $8 million to the City of New York for the fee under the office building (O4) at 5 Times Square in Garment District, Manhattan. The expected use is conversion to residential.
With this purchase, the developers are no longer tenants under a long-term lease with the city, they now own the property outright. Along with this sale, the city assigned the ground lease to the buyers. In 1994, the state’s Empire State Development signed an amended lease as landlord with a group of developers, who then assigned the ground leasehold of this parcel to Boston Properties, which constructed 5 Times Square.
The developers plan to convert the office building into a residential use with approximately 1,250 residential units, according to news reports and a joint press release from city and state government offices.

The deal closed on June 9, 2025 and was recorded on June 24, 2025. The property has 1,100,000 square feet of built space according to a PincusCo analysis of city data.
The signatory for City of New York was Adolfo Carrion Jr.. The signatory for RXR Realty , Apollo Global Management , and SL Green Realty was Jeffrey Horowitz . The contract date was June 9, 2025.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RXR Realty purchased three properties in two transactions for a total of $688.7 million and sold five properties in four transactions for a total of $854.5 million over the past 24 months.
The seller City of New York purchased six properties in one transaction for a total of $11.2 million and sold eight properties in three transactions for a total of $175.4 million over the same time period. The 1,100,000-square-foot property generated revenue of $83.9 million or $76 per square foot, according to the most recent income and expense figures.

The property

The office building in Garment District has 1,100,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 197 feet and is 150 feet deep with a total lot size of 27,156 square feet. The lot is irregular. The zoning is C6-7 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $481.8 million. The most recent loan totaled $10 million and was provided by Morgan Stanley on April 9, 2024.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $3,750 in ECB penalties in the last year.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 9th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the eight commercial properties representing 1,635,659 square feet of the 2,224,201 square feet. The largest owner is RXR Realty, followed by Yellowstone Real Estate Investments and then Newbond Holdings.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 1.9 million square feet of built space are office buildings, with specialty buildings next occupying 15 percent of the space.

The seller

The PincusCo database currently indicates that City Of New York owned at least 2,805 commercial properties with 236 residential units in New York City with 143,668,259 square feet and a city-determined market value of $32.8 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 143,668,259 square feet of built space are specialty properties, with office properties next occupying 4 percent of the space. The bulk, or 36 percent of the built space, is in Brooklyn, with Bronx next at 24 percent of the space.

The buyer

The PincusCo database currently indicates that SL Green Realty owned at least 36 commercial properties with 892 residential units in New York City with 18,006,928 square feet and a city-determined market value of $7.7 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 93 percent of the 18,006,928 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. They are all located in Manhattan.
The PincusCo database currently indicates that RXR Realty owned at least 21 commercial properties with 1,000 residential units in New York City with 8,954,095 square feet and a city-determined market value of $2.9 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 88 percent of the 8,954,095 square feet of built space are office properties, with D3 properties next occupying 5 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 16 percent of the space.
The PincusCo database currently indicates that Apollo Global Management owned at least four commercial properties with 591 residential units in New York City with 1,400,359 square feet and a city-determined market value of $554.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 79 percent of the 1,400,359 square feet of built space are office properties, with hotel properties next occupying 21 percent of the space. They are all located in Manhattan.

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