RXR doubles value of 47 Hall in Clinton Hill to $322M, buys out partner Westbrook

By Adam Pincus

Scott Rechler’s RXR Realty bought out partner Westbrook Partners at their office conversion project at 47 Hall Street, facing the Brooklyn Navy Yard, in a deal city records valued at $322 million. That is twice the $161.1 million price the joint venture paid for the city-block-sized complex, now dubbed The Hall, in 2016.

RXR through the entity RXR 9-47 Hall Street QOZB LLC acquired an interest in RXR Realty’s RXR 9-47 Hall Street Holdings JV LLC in a deal valued at $322.1 million. The sale closed on February 14, 2020, and was recorded on February 21, 2020. The transaction consists of 1 parcel, including the tax class miscellaneous warehouse (E9). The property is 555,920 square feet according to city estimates. News articles put the square feet at 650,000 across 10 buildings.
The average sale price per square foot is $579, according to the 555,920 square foot measurement.

RXR in a joint venture with Westbrook, acquired the warehouse parcel in 2016 for $161 million, and then launched an expensive rehabilitation to convert it to office and retail. Filings in the city’s Department of Buildings estimate the value of the new work at more than $40 million.

As part of the sale, RXR paid more than $10 million in city and state taxes to transfer ownership from the original 2016 ownership entity to the new one. The new one includes the acronym QOZB which commonly refers to a “Qualified Opportunity Zone Business.” The parcel is in fact included in an Opportunity Zone, which includes the Brooklyn Navy Yard and adjacent properties including this one.

Over the past five years, there have been 28 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $34,777,432. There were 27 renovation/alteration projects (A2) applied for with a total estimated value of $5,720,815.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link