RXR Realty signs $700M 5 Times Square refi with Morgan Stanley, Athene, AIG, Arab Banking, AustralianSuper

RXR Realty signed a $700 million refinance of 5 Times Square in the Garment District, Manhattan, with lenders Morgan Stanley, Athene Annuity And Life Company, AIG, New Zealand Superannuation Fund, Arab Banking Corporation and the Australian pension fund AustralianSuper. The original $715 million loan, held by Morgan Stanley, was split into two pieces, one for $400 million held by Morgan Stanley, AIG, the sovereign wealth fund New Zealand Superannuation Fund, Arab Banking Corporation, and the pension fund AustralianSuper. The other for $300 million was split into 30 individual loans of $10 million each, held by Athene.

The deal closed on September 2, 2022 and was recorded on September 28, 2022. The signatory for RXR Realty was David Frank. The signatory for Athene Annuity And Life Company was Jeffrey Horowitz. The signatory for Morgan Stanley was Brandon Atkins.

Prior sales and revenue

The 1,100,000-square-foot property generated revenue of $80.9 million or $74 per square foot, according to the most recent income and expense figures.

The property

The 5 Times Square 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 $527.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received six DOB violations and $16,005 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Garment District, the majority, or 70 percent of the 51.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.7 times the average sales volume among other neighborhoods with $938.2 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 16th highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were two 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 10 commercial properties representing 1,635,659 square feet of the 3,013,927 square feet. The largest owner is RXR Realty, followed by Yellowstone Real Estate Investments and then Torchlight Investors.
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 borrower

The PincusCo database currently indicates that RXR Realty owned at least 26 commercial properties in New York City with 10,188,898 square feet and a city-determined market value of $3.4 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 10,188,898 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

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