RXR Realty pays $64M to LIU for 324-unit resi building in Fort Greene, expected transaction

RXR Realty through the entity RXR 91 Dekalb Owner LLC paid $64 million through an entity level transaction to Long Island University for two residential condominium units with a total of 324 apartments at 89 DeKalb Avenue in Fort Greene, Brooklyn. The expected use is cash flowing. RXR Realty built the building. LIU owns a commercial condominium unit for the school.

RXR purchased the two residential units with about 234,000 square feet, within the building which is approximately 287, square feet. That yields a sale price per foot of about $273.50. LIU owns the Community Facility Unit (CFU): 53,739 SF total (consisting of 8,894 SF in the Cellar, 19,617 SF on the 1st Floor, and 25,226 SF on the 2nd Floor).RXR owns the Residential Unit 1 (RU-1): 222,862 SF total (spanning the Cellar and Floors 1 through 30). Residential Unit 2 (RU-2): 10,882 SF total (located on the 6th Floor).

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer RXR Realty purchased seven properties in four transactions for a total of $1.8 billion and sold 11 properties in eight transactions for a total of $1.3 billion over the past 24 months.
The seller Long Island University had not purchased any other properties and had not sold any properties over the same time period.

The block

On the tax block of 89 Dekalb Avenue, PincusCo has identified the owners of one of the four commercial properties representing 155,000 square feet of the 877,990 square feet. The identified owner is DASNY.
On the tax block, there was one new building construction project filed totaling 288,849 square feet. It is a 275-unit, 288,849 square-foot residential (R-2) building submitted by RXR Realty and filed by Todd Rechler with plans filed February 4, 2022 and permitted February 8, 2024.

The majority, or 84 percent of the 877,990 square feet of built space are specialty buildings, with industrial buildings next occupying 16 percent of the space.

The buyer

The PincusCo database currently indicates that rxr realty owned at least 26 commercial properties with 1,000 residential units in New York City with 11,967,467 square feet and a city-determined market value of $4.6 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 90 percent of the 11,967,467 square feet of built space are office properties, with D3 properties next occupying 3 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

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