RXR Realty exits 3-building GO Residential investment with $339.5M sale, reflects 30% value boost

RXR Realty sold its preferred equity investment in a three-building package of Upper East Side luxury buildings for $339.5 million, according to a Toronto stock exchange filing, yielding an approximately 30 percent increase over the $261 million it invested in the buildings in 2022. At that time RXR led a limited partnership including Qatar Investment Authority and Macquarie Capital Principal Finance through the entity RXR UES Holdings LLC, that placed the $261 million as part of the $850 million purchase led by Joshua Gotlib and Meyer Orbach’s GO Partners purchase of 1 East River Drive, 1 Sutton Place and 2 Sutton Place. GO Partners was a joint venture of Gotlib’s Black Spruce Management and Orbach’s Orbach Affordable Housing Solutions.

Joshua Gotlib and Meyer Orbach on July 31, 2025, announced the completion of an initial public offering on the Toronto-stock exchange for their new company, GO Residential Real Estate Investment Trust, which holds those three buildings as well as two others, 685 First Avenue and the American Copper Building at 626 First Avenue.

In Acris records, the transaction appeared like this: Go Residential Real Estate Investment Trust through the entity Go Residential Operating LLC paid $339.5 million through a partial interest acquisition with RXR Realty through the entity Rxr Ues Holdings Lp for the 234-unit residential elevator building (D8) at 420 East 61st Street in Lenox Hill, Manhattan, 209-unit residential elevator building (D8) at 1113 York Avenue in Lenox Hill, Manhattan, and 414-unit residential elevator building (D8) at 525 East 72nd Street in Lenox Hill, Manhattan.
The deal closed on July 31, 2025 and was recorded on September 5, 2025. The three properties have 1,174,579 square feet of built space according to a PincusCo analysis of city data.
The total in NYC transfer tax was $352,273,109.11 , while the total reported in the Toronto Stock Exchange database Sedar, was $339.5 million, up from $337 million disclosed in an earlier Sedar filing.

GO Residential’s final prospectus document on Sedar said, “The consideration to be paid by OpCo for the Acquired RXR Entities is anticipated to be $337,000,000. The Acquired RXR Entities are limited liability companies through which RXR UES Holdings LP indirectly holds a minority interest in 1 East River Place, One Sutton Place North and Two Sutton Place North and, following the consummation of the transactions contemplated by the Preferred Interest Purchase Agreement, RXR UES Holdings LP will no longer hold an indirect equity interest in 1 East River Place, One Sutton Place North and Two Sutton Place North.”

A later filing said, “the consideration paid for the Acquired RXR Entities was US$339,500,000 in cash, which cash was funded by a portion of the proceeds from the IPO.”

The buildings that GO Partners and RXR bought for $850 million in 2022, were valued in 2025 appraisal at $1.17 billion, indicating an increase of 38%. The sale price of $339.5 million reflects an increase of just over 30 percent. The value in acris reflects an increase of about 35 percent.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer GO Residential Real Estate Investment Trust had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller RXR Realty   purchased seven properties in four transactions for a total of $1.8 billion and sold six properties in five transactions for a total of $924.1 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Joshua Gotlib, head officer and Dino Calicchio, agent. The business entities are Go Residential Management Llc and 2 Sutton Place N Llc.

The property

The residential elevator building with 209 residential units in Lenox Hill has 1,174,579 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 223 feet deep with a total lot size of 26,956 square feet. The lot is irregular. The zoning is C4-7 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2014 and expires in 2024. The city-designated market value for the property in 2022 is $64.6 million. Apollo Global Management on January 31, 2024 bought a loan with an original principal of from signed by , secured by 1113 York Avenue, when owned by RXR Realty. The property has 209 rent regulated units according to city tax records from 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation, two housing violations, $1,850 in OATH penalties, and one housing litigation in the last year.

Development

For the tax lot buildings, two out of the three buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On the tax block of 1113 York Avenue, PincusCo has identified the owners of two of the four commercial properties representing 590,848 square feet of the 681,034 square feet. The identified owner is Go Residential Real Estate Investment Trust.
There are no active new building construction projects on this tax block.

The majority, or 87 percent of the 681,034 square feet of built space are elevator buildings, with office buildings next occupying 7 percent of the space.

The seller

The PincusCo database currently indicates that RXR Realty owned at least 25 commercial properties with 1,000 residential units in New York City with 11,991,935 square feet and a city-determined market value of $4.5 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 91 percent of the 11,991,935 square feet of built space are office properties, with D3 properties next occupying 3 percent of the space. The bulk, or 84 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

Direct link to Acris document. link